Tesla board floats $1trn pay package for Elon Musk
By Iain Gilbert
Date: Friday 05 Sep 2025
(Sharecast News) - Electric carmaker Tesla has proposed a landmark compensation package for chief executive Elon Musk, potentially worth as much as $1trn over the next decade.
The pay package, which was contingent on a series of performance milestones, including the expansion of its robotaxi business and a near ninefold increase in market valuation, would see Musk rewarded incrementally as Tesla's market cap climbs from its current $1trn level to $8.5trn.
Musk's proposed payout also echoes his 2018 package, which catalysed Tesla's surge to tech mega-cap status, but dwarfs it in scope and ambition.
If approved, the package would cement Musk's status as the highest-paid executive in corporate history, while signalling Tesla's intent to dominate the next phase of autonomous transport.
AJ Bell's Dan Coatsworth said: "Tesla is a public company, and shareholders will ultimately decide if he deserves a $1trn pay deal. Securing this money will be dependent on hitting targets and current progress suggests Musk will need a stroke of extraordinarily good luck to grab the 13-digit figure. Shareholders would love for Musk to hit the targets to trigger the payday, as they would also share in the success via a higher share price. Therefore, it feels like many investors would happily approve it.
"The bigger question is whether this proposal sets a new precedent and boardrooms across America will think it's ok to add a zero or two onto the end of current remuneration packages. It all seems a tad excessive and a symptom of poor corporate governance."
As of 1345 BST, Tesla shares were up 1.93% at $345.08 each.
Reporting by Iain Gilbert at Sharecast.com
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