Tesla board proposes 10-year Musk pay plan with potential 1 trillion

Tesla’s board on Friday proposed a 10 year compensation package for Chief Executive Officer Elon Musk that could be worth as much as about 1 trillion if the company meets a sequence of ambitious performance targets, according to a regulatory filing. The plan would award Musk roughly 423.7 million additional Tesla shares across a dozen tranches if milestones tied to valuation, vehicle sales, profitability and robotics are achieved, and shareholders are scheduled to vote on the proposal at Tesla’s annual meeting on Nov. 6.

Under the proposal, the most extreme payout would require Tesla’s market value to climb from roughly 1.1 trillion today to as much as 8.5 trillion, a level analysts say would eclipse the market caps of today’s largest companies. Other milestones include annual sales of about 20 million vehicles, the sale of 1 million humanoid robots and 1 million driverless robotaxis, and steep gains in operating profit. Tesla said the awards would be delivered in shares rather than cash and that Musk must remain with the company for at least seven and a half years to receive early tranches and for 10 years to earn the full package. The filing also notes conditions for the...