The board of directors at electric vehicle maker Tesla (TSLA) have proposed a new compensation plan for CEO Elon Musk valued at $1 trillion U.S.
Musk will receive the hefty remuneration if Tesla achieves several future targets and milestones.
The proposed package, which would be the largest in corporate history if approved by shareholders, underscores Tesla's bet on Musk to steer its transformation from a carmaker into new areas such as robotics and artificial intelligence (A.I.).
The plan is expected to be tied to ambitious performance milestones, including growth in A.I.-driven products and self-driving vehicles.
The latest pay package for Musk comes after Tesla's board of directors approved an interim compensation package for the CEO worth $29 billion U.S. in company stock.
The pay is designed to keep Musk engaged and leading Tesla through the year 2030 as the company pivots from electric vehicles to an A.I. and robots.
However, the big paydays also come as Tesla’s electric vehicle sales plunge around the world and the company’s stock treads water.
Last year, a judge in a Delaware court voided a previous pay package for Musk that was worth $56 billion U.S., calling the compensation “improper” and ruling that it was potentially damaging to Tesla shareholders.
TSLA stock is down 11% this year and trading at $338.53 U.S. per share.
