Tesla has issued a letter to shareholders requesting approval for yet another large pay plan for CEO Elon Musk, according to a financial filing released on Friday.
The total value of the package is roughly $975 billion based on the maximum payout. The full award would grant Musk more than 423 million additional shares. He currently owns about a 13% stake in the company.
Tesla Chairwoman Robyn Denholm stated that the plan was created to ensure the CEO remains motivated and focused on delivering results for the company.
Parts of the lengthy shareholder letter, written by board members Robyn Denholm and Kathleen Wilson-Thompson, read:
“The Board has taken meaningful steps toward delivering on our past compensation deal with Elon, which you, our shareholders, have previously — and overwhelmingly — approved twice, by granting him the 2025 CEO Interim Award. Now, we are laying the foundation for our next decade of growth by rolling out our ambitious vision and securing our leadership to deliver against that vision.”
“We believe that Elon’s singular vision is vital to navigating this critical inflection point. We also recognize the formidable nature of this undertaking and as a result, the importance of having a leader who is not only willing and capable but eager to meet this challenge.”
“Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history.”
“If Elon achieves all the performance milestones under this principle-based 2025 CEO Performance Award, his leadership will propel Tesla to become the most valuable company in history.“
The company’s proposal also requested approval for Musk to pursue “the worthy and world-reshaping ambitions of Master Plan, Part IV.”
Tesla shares rose almost 2% in premarket trading following the company’s statement.
By CEO NA Editorial Staff
