In a bold move, the electric vehicle manufacturer has unveiled a new compensation plan for its CEO that could potentially reach a staggering $1 trillion. This proposal comes at a time when the company is facing challenges in its automotive sector while simultaneously exploring advancements in humanoid robotics and artificial intelligence.
The compensation package is intricately linked to ambitious performance targets, one of which aims to elevate the company’s market valuation from approximately $1 trillion to over $8 trillion. Should these benchmarks be met, the CEO would receive an additional 423 million shares, increasing his ownership stake to around 25%. This move is particularly significant as the CEO has previously expressed intentions to depart the company if he does not gain more influence over voting rights.
Shareholders will have the opportunity to vote on this proposal during the upcoming annual meeting, set to take place later this year. This announcement follows closely on the heels of a recently disclosed $29 billion compensation package, which was introduced to compensate for a previous plan that was rejected by a court in Delaware.
In a filing with the Securities and Exchange Commission, the company articulated its belief that society is at a pivotal moment, asserting that it can lead the way towards a future characterized by “sustainable abundance” through the large-scale introduction of innovative and affordable technologies.
The company emphasized its commitment to democratizing access to autonomous goods and services, highlighting the transformative potential of its initiatives.
Furthermore, the company underscored the importance of the CEO’s unique vision in steering the organization through this critical juncture. It referenced the recently released “Master Plan Part IV,” which the CEO had a minimal role in promoting, acknowledging that it lacked detailed specifics.