Tesla boss Elon Musk could earn $1trillion in a staggering new pay deal.
The billionaire, already the world’s richest man, will receive the equivalent of £740billion if the electric car giant hits certain targets over the next decade.
The ten-year package is thought to amount to the largest pay deal in corporate history.
It comes after a previous package worth close to £40bn was struck down by a US court.
While Tesla is appealing that decision, the board is looking to incentivise Mr Musk by paying him in the form of shares, not cash or bonuses.
The board hopes the deal will convince its chief executive to focus on Tesla amid fears he has been distracted by other business interests and his foray into politics with President Trump.
‘If Elon achieves all the performance milestones, his leadership will propel Tesla to become the most valuable company in history,’ said Tesla chairman Robyn Denholm in a letter to investors.
Tesla boss Elon Musk could earn $1trillion in a staggering new pay deal. The billionaire, already the world’s richest man, will receive the equivalent of £740billion if the electric car giant hits certain targets over the next decade
The ten-year package is thought to amount to the largest pay deal in corporate history. Pictured: Tesla CEO Elon Musk speaks at the Model X launch event in Fremont, California, on September 29, 2015
She said the offer is ‘designed to align extraordinary long-term shareholder value with incentives that will drive peak performance from our visionary leader’.
The board is now seeking shareholder approval for the plan.
Dan Coatsworth, investment analyst at AJ Bell, said: ‘A $1trillion pay package beggars belief. Is one person ever worth that much? Musk is a visionary, has endless energy, and the confidence to succeed.
‘But he also presides over a company that has lost its edge, is being overtaken by rivals, and whose brand has been tarnished by Musk’s actions outside of Tesla. Surely Musk should be fighting for his job, not Tesla’s board fighting to keep him?
‘One minute Tesla’s board is wondering if Elon Musk is a liability to the company given his outspoken views and political distractions, the next they’re effectively saying ‘pick a number, any number’ to lock him in for as long as possible.’
One key target is to reverse the decline in Tesla’s share price and boost the company’s market value to over £6trn from around £750bn today.
It also includes expanding Tesla’s self-driving autonomous robotaxi business and its use of artificial intelligence.
Ms Denholm added: ‘Simply put, retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.’
Mr Musk’s political manoeuvring coincided with a slump in Tesla sales amid a backlash from opponents and fierce competition from Chinese competitors.
