Business Desk 
Sep 06, 2025
In a move that appears to be strenghtening Elon Musk's position as the richest man in the world, Tesla board has announced a staggering $1 trillion compensation pay package for the Tesla CEO.
This one comes as the largest pay package in corporate history, highlighting Musk's unwavering influence over the company amid Tesla pushing to become a leader in AI and robotics.
What was Elon Musk's Tesla pay package in 2024?
Musk, the wealthiest man on earth, has been striving to secure a larger stake in Tesla to increase his control, despite ongoing legal disputes around his previous pay package valued at $56 billion.
The new compensation plan is roughly 18 times of Musk's previous year's compensation plan, reflecting the company's current market valuation.
This proposal shows the board's confidence in Musk's leadership, especially as Tesla faces stiff competition from Chinese rivals and a decline in electric vehicle (EV) demand, Reuters reported.
Adam Sarhan, the CEO of 50 Park Investments, maintained that the scale of this package sets a new standard for CEO incentives.
The proposed package could grant Musk up to 12% of Tesla's stock, worth about $1.03tn if the company reaches a target market value of $8.6tn.
While Musk's compensation is said to be entirely performance-based, it raises questions about governance and the future of leadership at Tesla, as the board prepares to present this proposal for a shareholder vote in November.
