Part 2/9:
Kathy Wood pointed out that Musk’s previous compensation plans had already exceeded expectations. When Tesla proposed its initial pay package in 2018, it was met with skepticism, but Musk achieved the set benchmarks two years early, demonstrating extraordinary execution and value creation.
The current package hinges on Tesla’s ability to reach an unprecedented valuation of $8.5 trillion by 2035, a figure far surpassing current market caps. To attain this, Musk would need to steer Tesla to a market capitalization approximately 8.5 times higher than today’s valuation, which is around $1 trillion. Such a feat would require a compound annual growth rate (CAGR) of nearly 49% in EBITDA, a level rarely achieved by any company globally.