Driving the news: Tesla $TSLA ( ▲ 2.59% ) has proposed an unprecedented $1 trillion compensation package for CEO Elon Musk that would span 10 years and require him to grow the company's market value to at least $8.5 trillion while expanding its robotaxi business.
For context: The package could push Musk's Tesla stake to at least 25% if he meets all benchmarks, giving him expanded control over the electric vehicle maker.
Tesla's board designed the plan after Musk's previous $50+ billion compensation package was struck down by a Delaware court, though the company is appealing that decision.
Tesla's current market value is around $1 trillion, meaning Musk would need to grow it more than eight-fold to earn the payout.
Why it matters: The $1 trillion package would dwarf any other executive compensation and signals that Tesla's board believes the company's future is entirely dependent on keeping Musk engaged.
Bottom line: Tesla shareholders will vote in November on whether to approve what amounts to one of the largest bets in corporate history.
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