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Tesla board proposes Musk pay package worth as much as $1 Trillion over decade

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By illuminem briefings

· 3 min read


illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Tesla’s board has proposed a new compensation package for CEO Elon Musk that could reach $1 trillion over the next decade, contingent on the company meeting ambitious performance targets
According to a financial filing released Friday, the package would grant Musk share-based awards in tranches tied to specific operational and market capitalization milestones

🔭 The context: This proposal follows Musk’s previous $56 billion pay package—approved in 2018 and later voided by a Delaware court in 2024 on governance grounds
Tesla (see sustainability performance) has since reincorporated in Texas, and the new plan appears structured to avoid legal vulnerabilities while maintaining Musk’s motivation to drive long-term growth
Musk remains central to Tesla’s innovation trajectory, particularly in AI, energy storage, and autonomous vehicles

🌍 Why it matters for the planet: Tesla plays a pivotal role in the global clean energy transition
The proposed package raises questions about corporate governance, income inequality, and the alignment of executive incentives with environmental and social outcomes
If Tesla meets the underlying growth goals, it could significantly expand the deployment of electric vehicles, battery storage, and sustainable energy systems
However, the extraordinary scale of compensation invites scrutiny over whether shareholder value and public interest are being balanced effectively

⏭️ What's next: Tesla shareholders will vote on the package in an upcoming meeting, the date of which has not yet been announced
The plan’s approval is likely to spark renewed debate over executive compensation, especially in climate-focused sectors
It may also set a precedent for performance-based pay structures in other high-impact industries
Analysts will watch closely for additional details on the plan's metrics and sustainability implications

💬 One quote: “This proposal is about retaining the singular leadership of Elon Musk to propel Tesla’s mission into the next decade of innovation.” – Tesla Board Statement (excerpt from filing)

📈 One stat: If approved, the $1 trillion pay package would represent the largest executive compensation plan in corporate history, eclipsing Musk’s own 2018 deal nearly twentyfold

See on illuminem's Data Hub™ the sustainability performance of Tesla and its peers BYD, Rivian, and Lucid Motors

Click for more news covering the latest on corporate governance

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illuminem's editorial team, providing you with concise summaries of the most important sustainability news of the day. Follow us on Linkedin, Twitter​ & Instagram

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