{"id":206623,"date":"2025-09-07T03:25:16","date_gmt":"2025-09-07T03:25:16","guid":{"rendered":"https:\/\/www.europesays.com\/us\/206623\/"},"modified":"2025-09-07T03:25:16","modified_gmt":"2025-09-07T03:25:16","slug":"tesla-board-takes-firm-stance-on-elon-musks-political-involvement-in-pay-package-proxy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/206623\/","title":{"rendered":"Tesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy"},"content":{"rendered":"

Tesla\u2019s Board of Directors has proposed a new pay package for company CEO Elon Musk that would result in $1 trillion in stock offerings if he is able to meet several lofty performance targets.<\/p>\n

Musk, who has not been meaningfully compensated since 2017, completed his last pay package by delivering billions in shareholder value through a variety of performance-based \u201ctranches,\u201d which were met and resulted in the award of billions in stock.<\/p>\n

\n

Elon Musk\u2019s new pay plan ties trillionaire status to Tesla\u2019s $8.5 trillion valuation<\/a><\/p>\n<\/blockquote>\n

However, Musk was unable to claim this award due to a ruling by the Delaware Chancery Court, which deemed the payout an \u201cunfathomable sum.\u201d<\/p>\n

Now, the company is taking steps to ensure Musk gets paid<\/a>, as the Board feels that it is crucial to retain its CEO, who has been responsible for much of the company\u2019s success.<\/p>\n

This is not a statement to undermine the work of all of Tesla\u2019s terrific employees, but a ship needs to be captained by someone, and Musk has proven he is the right person for the job.<\/p>\n

The Board also believes that, based on a statement made by the company in its proxy, various issues will be discussed during the upcoming Shareholder Meeting.<\/p>\n

Robyn Denholm and Kathleen Wilson-Thompson recognized Musk\u2019s contributions in a statement, which encouraged shareholders to vote to approve the payout<\/a>:<\/p>\n

\u201cWe\u2019re asking you to approve the 2025 CEO Performance Award. In designing the new performance award, we explored numerous alternatives. Ultimately, the new award aims to build upon the success of the 2018 CEO Performance Award framework, which ensure that Elon was only paid for the performance delivered and incentivized to guide Tesla through a period of meteoric growth. The 2025 CEO Performance Award similarly challegnes Elon to again meet a series of even more aspirational goals, including operational milestones focused on reaching Adjusted EBITDA targets (thresholds that are up to 28 times higher than the 2108 CEO Performance Award\u2019s top Adjusted EBITDA milestone) and rolling out new or expanded product offerings (including 1 million Robotaxis in commercial operation and delivery of 1 million AI Bots), all while growing the company\u2019s market capitalization by trillions of dollars.<\/p>\n

Yes, you read that correctly: in 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions \u2014 to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.<\/p>\n

In addition to these unprecedented performance milestones, the 2025 CEO Performance Award also includes innovative structural features, born out of the special committee\u2019s considered analysis and extensive shareholder feedback. These features include supercharged retention (at least seven and a half years and up to 10 years to vest in the full award), structural protections to minimize stock price volatility due to administration of this award and, thereafter, incentives for Elon to participate in the Board\u2019s continued development of a framework for long-term CEO Succession. 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.\u201d<\/p>\n

Musk will have a lot of things to accomplish to receive the 423,743,904 shares, which are divided into 12 tranches.<\/p>\n

However, the Board feels he is the right person for the job, and they want him to remain the CEO<\/a>. This package should ensure that he stays with Tesla, as long as shareholders feel the same way.<\/p>\n","protected":false},"excerpt":{"rendered":"Tesla\u2019s Board of Directors has proposed a new pay package for company CEO Elon Musk that would result…\n","protected":false},"author":3,"featured_media":206624,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[64,66,1322,7829,113629,67,132,68],"class_list":{"0":"post-206623","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-elon-musk","10":"tag-featured","11":"tag-tesla","12":"tag-tesla-board-of-directors","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115160883107380660","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/206623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=206623"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/206623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/206624"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=206623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=206623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=206623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}