Don't dilute shareholder value!
A Blue Print for Growth without Harming Shareholders.
Additional Information
🚀 There are other options:
How about modifying the proposed 12-tranche incentive package, such as providing $10 billion per tranche to Elon Musk, coupled with an aggressive share buyback program, is not merely a compensation plan—it is a strategic blueprint for the next decade of transformative shareholder value creation. This structure is a direct and enhanced continuation of the highly successful 2018 performance-based package, which cemented the principle that Musk's personal wealth must be entirely subordinate to and dependent on the company's monumental success.
Pure Pay-for-Performance, Magnified
The core of this proposal lies in its commitment to pure pay-for-performance. Musk receives zero compensation—no salary, no cash bonus, no time-based equity—unless a dual set of extremely ambitious milestones are met: an unprecedented market capitalization target (e.g., reaching a valuation target far beyond current levels) and a challenging operational target (e.g., in areas like autonomous technology deployment, vehicle delivery volume, or robotics production).
Each of the 12 tranches, valued at an approximately $10 billion performance-based payout, only vests upon achieving these benchmarks. This ensures that Musk is paid only when all shareholders benefit from exponential, industry-defining growth.
The Strategic Power of Combined Buybacks
The innovation in this proposal is the integrated share buyback component. The Board commits to executing a significant share repurchase program, committing to a target spend of $10 Billion in company capital for every tranche successfully vested.
This combined strategy serves two critical, mutually reinforcing purposes:
* Enhancing Shareholder Value: By reducing the total number of outstanding shares, the buyback program provides an immediate, tangible return to all remaining shareholders by boosting key metrics like Earnings Per Share (EPS). It is a highly efficient use of capital that rewards long-term holders.
* Aligning Control with Vision: The simultaneous grant of shares to Musk (the numerator) and the reduction of the overall share count (the denominator) is the most direct way to increase his voting control. Musk has consistently stated his belief that his continued, high-conviction leadership requires a greater ownership stake to ensure his long-term vision is not diluted by short-term pressures or institutional resistance. Increasing his control is not an end in itself, but a mechanism to secure the visionary, long-term strategic decisions—such as the massive capital deployment needed for AI and robotics—that have historically delivered unparalleled shareholder returns.
An Echo of the 2018 Success
By mirroring the 12-tranche, "all upside" philosophy of the 2018 package, this proposal aligns his personal financial outcome with the company's fate for another decade. The 2018 deal transformed Tesla from a niche automaker to a trillion-dollar technology giant, an outcome widely credited to Musk's hyper-incentivized focus. This new, larger framework—with its combined compensation and capital allocation strategy—is simply recognizing the new, higher stakes of the company's ambitious path toward its next phase of exponential growth. It is a necessary and proven structure to secure the services and dedication of a unique asset in corporate history.
Should this be the proposal? Who knows? The point is that there is an alternate path to get Elon the voting control he seeks without diluting shareholder value. Win-Win!!!
A pay package that gives a half trillion of value to Elon would still be historic and a half trillion in stock buy back would get him a significant controlling interest while rewarding shareholders too.
