Tesla boss Elon Musk will receive a pay package worth over $1tn (£740bn) if he hits a list of ambitious targets over the next decade, the board of the electric car firm has proposed.
Musk would not get a salary or bonus under the plan, which depends on Tesla’s value soaring more than eightfold alongside other moonshot goals.
To get the $1tn package, Musk, who is already the world’s richest person, would need to boost one of Tesla’s earning figures 24-fold, put a million robotaxis into operation, sell a million artificial intelligence robots, and sell another 12 million Tesla cars.
The company’s board urged investors to vote in favour of the package.
“Growth that may seem impossible today can be unlocked with new ideas, better technology and greater innovation,” Tesla chair Robyn Denholm said.
“Simply put, retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.”
It comes after Musk was awarded $29bn in shares last month after his original $50bn award was struck down by a US court for being “unfair to shareholders”.
Under the latest plan Musk would be awarded the shares in 12 tranches, tied to 12 market milestones. The first milestone is reaching a market value of $2tn.
He must also hit an operational milestone alongside each market milestone, which include the robot and vehicle targets.
Dan Coatsworth, investment analyst at AJ Bell, said the suggested pay award “beggars belief”.
“Is one person worth that much?” he asked.
Mr Coatsworth added that Musk “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.”
He continued: “Surely Musk should be fighting for his job, not Tesla’s board fighting to keep him?”
The board’s unprecedented pay proposal comes just months after it was forced to deny reports that it was looking to replace Musk.
According to a report in the Wall Street Journal in May, which Tesla said was “absolutely false”, the board had hired headhunters to replace Musk because he was too focused on his work with US President Donald Trump to tackle Tesla’s sinking share price.
The Wall Street Journal told the BBC at the time it stood by its reporting.
Mr Coatsworth said: “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.”
