Tesla’s ‘Super Ambitious’ $1-trillion deal for Elon Musk could still pass shareholder muster

Tesla’s $1-trillion, 10-year pay package to retain Chief Executive Officer (CEO) Elon Musk is likely to be approved by shareholders at the company’s annual meeting in November even though the amount is staggering.

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That is because it was crafted with an eye on keeping Mr. Musk in place, addressing concerns about the company’s technical outlook and giving big company owners just enough reason to back the massive amount, investors and executive pay analysts said.

Earlier on Friday, the automaker’s board approved what it called “A Super Ambitious Incentive Package for a Pioneering, Ambitious and Unique CEO” that sets out lofty earnings and valuation targets — awarding Mr. Musk millions of shares over the next decade if he hits them. It immediately gives Mr. Musk 96 million shares of restricted stock worth more than $31 billion as of intraday trading on Friday that vests over the next two years, as well as more control over the company. His total 2025 compensation package is worth north of $113 billion, executive compensation research firm Equilar has estimated.