WASHINGTON, United States: The board of directors of electric car maker, Tesla, has proposed an unprecedented compensation package of more than USD1 trillion (RM4.24 trillion) for its Chief Executive Officer, Elon Musk, that will make him the first trillionaire, reported German Press Agency (dpa).
According to Tesla’s proxy filing, the proposal calls for the grant of additional shares in Tesla that will push Musk’s voting stake in the electric car maker to at least 25 per cent, which he has openly demanded for some time.
The total award size will be 423.74 million shares of Tesla’s common stock, which represents a 12 per cent stake in the company.
The additional shares will push Musk’s stake in the company to 24.8 per cent from the 13.5 per cent stake he currently owns.
Musk’s stake can also rise to 28.8 per cent, including the CEO Performance Award 2018, a part of which is in a legal dispute despite shareholder approval.
The new award would be worth USD143.5 billion (RM607.83 billion) at Thursday’s closing stock value.
Musk currently owns 410 million shares of Tesla’s common stock, worth USD139 billion (RM588.80 billion) at Thursday’s closing price.
The proposed CEO Performance Award 2025 uniquely challenges Musk to guide Tesla through a new phase of unprecedented growth by rewarding him only if he delivers once again on several milestones, including extraordinary financial returns for Tesla shareholders.
The new award aims to build upon the success of the CEO Performance Award 2018 framework, which ensured that Musk was only paid for performance delivered and incentivised to guide Tesla through a period of meteoric growth.
The Performance Award is subject to approval by shareholders. – BERNAMA-dpa
