Tesla has proposed a new 10-year compensation plan for CEO Elon Musk, despite the stumbling blocks of the EV maker’s automotive business and focusing on humanoid robotics and AI.
The company has tied its compensation to many benchmarks, one of which involves increasing Tesla’s overall valuation from around $1 trillion to over $8 trillion. The plan grants the company more than 423 million additional shares to Musk, increasing his level of control to about 25%. Musk previously threatened to leave Tesla if Tesla didn’t receive more voting rights.
The proposal will be voted by shareholders at Tesla’s annual meeting scheduled for later this year. Details of the plan come a month after the company announced a $29 billion compensation package aimed at supplementing a plan that was discontinued by a Delaware judge.
Tesla wrote to shareholders in filing with the Securities and Exchange Commission, claiming that the world is at a “critical inflection point” in society and that “introducing innovative and affordable technologies of scale” can lead an era of “sustainable abundance.”
“Tesla can help bring about a society that democratizes autonomous products and services,” the company writes.
Tesla writes that Musk’s “singular vision” is “essential” to “navigate this important inflection point.” We quoted the company’s recently released “Master Plan Part IV.” This says Musk has “announced it.”
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