Elon Musk could become world’s highest-paid CEO with $1 trillion Tesla package: What it means | Technology News

Earlier this week, American automotive and clean energy company Tesla announced that its shareholders have voted in favour of CEO Elon Musk’s almost $1 trillion pay package with 75 per cent support among voting shares. 
In simple words, they voted and approved a massive compensation deal for Elon Musk and this package could be worth $1 trillion over the next decade. 
How does it work though?
Reportedly, Musk will only get the full payout if Tesla accomplishes very ambitious targets. These targets include the company’s value to reach around $8.5 trillion. Millions of vehicles sold annually including robot-taxis and humanoid robots over a multi-year period. And, most importantly, Musk remains the CEO for many years ensuring that the company takes action on this grand vision. 
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Now, if everything goes according to plan, the 54-year-old billionaire becomes one of the highest-paid executives in hory. While the total could be up to $1 trillion, according to Reuters after deductions it would be about $878 in net terms. 

The pay package has also raised some concerns. The astronomical figure is definitely unprecedented and many feel that it may accord Musk massive control over Tesla. Some major investors are apprehensive about dilution of their shares and the entire organisation depending on one person. On the other hand, some feel the goals are extremely optimic such as exponential sales of robot taxis, humanoid robots, and hitting $8.5 trillion market cap. It is still unclear if the company can attain these goals. 
New era of Tesla?
With this it seems Tesla is signalling its plans to go much beyond electric cars. It is now betting big on AI, robotics, and automated services. Musk is getting the highest salary on the planet, but only if Tesla delivers on major growth and transformation. This also shows that shareholders are betting that Musk has the potential to lead Tesla into a new era of transformation, much beyond its current scope. On the other hand, for investors, they worry about what if Tesla fails to deliver on the lofty targets. This could result in slightly low pay out, but the deal being so large could impact how the company is run. 
Indeed this is one of the most extreme examples of how CEO pay is tied to long-term goals, instead of short-term performance.Story continues below this ad
It needs to be noted that the $1 trillion figure isn’t real, at least not yet. Tesla shareholders re-approved Musk’s old $56 billion stock-option plan from 2018. The $1 trillion number just shows what his shares could be worth someday if Tesla’s value soars that high, it’s not an actual payout.
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