A Securities and Exchange Commission filing shows Tesla will hold a special meeting of shareholders on March 21 to vote on a unique new compensation plan for Elon Musk.
The plan is all-or-nothing. It would keep Musk at the company for the next 10 years and be entirely contingent on achieving market cap and operational milestones that would make Tesla one of the most valuable companies in the world. Musk is not guaranteed compensation of any kind. Instead, his only compensation will be a 100% at-risk performance award, which ensures that he will be compensated only if Tesla and all of its shareholders do well.
The company is advising shareholders to approve the plan.
Musk, who currently owns about 22 percent of Tesla’s outstanding shares, will recuse himself from the vote. His brother Kimbal, who is on Tesla’s board of directors, will do the same.