Tesla outlined a new compensation package for its CEO on Friday, Elon Musk, which could be worth about a billion dollars if the company meets certain ambitious objectives during the next decade, in a decision that occurs one month after the company’s board approved an award of shares for it for a value of around 29 billion dollars.
Key data
The company described the plan in a presentation before the SEC, which could see the billionaire obtain an additional participation of 12% in the electric car manufacturer, in line with a demand that Musk made last year.
In the presentation, the company indicates that “it currently does not have a long -term CEO performance award to retain and encourage Elon to concentrate their energies in Tesla” and that “it was time to change that.”
To receive its complete reward, Musk will have to meet the ambitious objective of increasing Tesla market capitalization of around 1 billion dollars today to 8.5 billion dollars in a period of ten years.
In addition to this, the company must reach other milestones such as selling 12 million more electric cars, 10 million autonomous driving subscriptions, operating 1 million robotaxis, selling 1 million tesla bots and increasing the profits adjusted to 400 billion dollars.
The objectives are divided into 12 sections and when reaching each milestone level, Musk will acquire 1% of Tesla’s actions.
Musk has not yet publicly commented on the matter.
Cita Crucial
In a letter to the shareholders included in the presentation, the president of the Board of Directors of Tesla, Robyn Denholm, affirms: “In short, retain and encourage Elon is essential for Tesla to achieve her goals and become the most valuable company in history.” He added: “We believe that Elon is the only person capable of leading Tesla at this crucial moment.”
How have the markets reacted?
In the first operations prior to the opening of the market on Friday, Tesla shares rose 2.03%, to 345.40 dollars. However, the price of the actions of the electric car manufacturer has fallen more than 10% since the beginning of the year and almost 30% since mid -December, due to the fall of sales and criticism for Musk’s political activities.
Forbes assessment
The current net worth of Musk amounts to 430.9 billion dollars, according to Forbes estimates. His fortune places him at the top of the list of billionaires in real time of Forbes by a significant margin, ahead of the founder of Oracle, Larry Ellison; the founder and executive director of Meta, Mark Zuckerberg; and the founder of Amazon, Jeff Bezos.
Tangent
If all the objectives are achieved, the new compensation plan would raise Musk’s participation in Tesla to about 25%. In one Publications series In X last year, Musk claimed to feel uncomfortable with the growth of Tesla until it becomes a leader in AI and robotics without having about 25% of the vote power in the company. The billionaire argued that such agreement would be enough to be influential, “but not so much that it cannot be overthrown.” He added: “With 15% or less, the proportion of votes in favor/against to cancel my decision facilitates too much an acquisition for doubtful interests.” Musk’s demand of greater vote power was accompanied by the threat that he would prefer to manufacture “out of Tesla” products.
This article was originally published by Forbes Us.
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