Tesla’s board proposes a $1 trillion compensation plan for CEO Elon Musk, the largest in history, emphasizing Musk’s influence on the company’s transformation into an AI and robotics powerhouse. The award is 18 times larger than a previous package and reflects the company’s current market valuation.

The proposal showcases the board’s confidence in Musk’s leadership, despite competition from Chinese rivals and softening EV demand. Analysts note the unprecedented scale of the plan, setting a new standard for CEO incentives and sparking discussions in boardrooms worldwide.

The plan grants Musk up to 12% of Tesla’s stock, valued at $1.03 trillion if the company reaches an $8.6 trillion market value. It requires Tesla’s valuation to increase nearly eightfold over the next decade. Musk envisions humanoid robots driving Tesla’s value to $25 trillion.

The award, tied to market capitalization and operational milestones, could significantly boost Musk’s voting power and intensify governance debates. Musk’s compensation is entirely linked to performance, with no salary or cash bonuses, aligning with the company’s focus on results.

Tesla’s board approved an interim compensation package for Musk worth $29 billion in restricted stock, aiming to retain him through 2030. The proposed $1 trillion plan reflects shareholder feedback and governance improvements, undergoing review by a special committee before a shareholder vote in November.

Read more at Yahoo Finance: Tesla offers mammoth $1 trillion pay package to Musk, sets lofty targets