September 2025 looks controversial. The U.S. labor market is in decline, and only one in four Americans believe in the possibility of improving their standard of living. At the same time, Tesla’s board of directors has offered Elon Musk a compensation package that could potentially make him the world’s first trillionaire.
This is the largest compensation package for a CEO in history. It looks like the perfect “carrot” to retain a leader who simultaneously seeks power and money, but often scatters his attention to other projects.
Under the terms of the plan, Musk must stay at Tesla for at least seven and a half years to receive his first shares, and he must work for exactly 10 years to receive the full compensation. This is a key condition, as he runs several other companies at the same time: SpaceX, the artificial intelligence company xAI, and the X platform (formerly Twitter). And until recently, he was actively involved in politics and Head of the US Government Effectiveness Department. The proposal is designed primarily to focus Musk’s attention on Tesla, the company that made him the richest man alive. In recent years, Tesla has been showing signs of an impending crisis. Sales of electric vehicles in the key markets shrink, financial performance is deterioratingand the new models do not find support among customers. It’s also worth mentioning a court decision in Florida that ordered Tesla topay about $329 million in fines and compensation to victims accidents.
To receive the full compensation package, estimated at about $900 billion, Musk needs to raise Tesla’s market capitalization from the current $1.1 trillion to $8.5 trillion, more than double the valuation of the world’s current most valuable company — the GPU and chip manufacturer for Nvidia. In addition, the requirements include the launch of 1 million Tesla robotaxis and the same number of artificial intelligence robots. The plan also takes into account his participation in Tesla’s long-term leadership succession program.
Another point of the package is mechanisms to reduce share volatility, which has become especially important in 2025.
“We believe that Elon’s unique vision is critical to getting us through this critical juncture,” wrote Chairman Robin Denholm and Board member Kathleen Wilson-Thompson in a letter to shareholders. — We also recognize how challenging this task is, so it is critical to have a leader who is not only capable of, but also committed to, fulfilling this mission. Simply put, retaining and motivating Elon is key to Tesla achieving its goals and becoming the most valuable company in history.”
The document hints that this decision is partly due to Musk’s own hints that he may focus on other interests if he does not receive guarantees. Last year, Musk warned that he was “uncomfortable developing Tesla to become a leader in artificial intelligence and robotics without having about 25 percent control of the votes.” Some experts viewed this statement as blackmail.
“Ultimately, the ad hoc committee recognized the critical importance of ensuring Musk’s commitment and focus on Tesla’s leadership,” the authors of the document concluded.
The package must still be approved by Tesla shareholders. The vote is scheduled for November 6. Earlier, a similar (also performance-based) package in 2018 was overturned by a Delaware court, and Tesla has filed an appeal. The new plan, if approved, will replace the previous one if the appeal is unsuccessful.
If all conditions are met, Musk’s stake in Tesla will increase from the current 13% to 29%.
Source: engadget, futurism
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