On Friday, Tesla Motors (TSLA.US) shares climbed more than 4%, reaching $353.51. According to market reports, Tesla's board chairman announced that the company has established a succession plan for Elon Musk. Tesla has presented its CEO with an unprecedented compensation agreement potentially worth approximately $1 trillion, representing the largest executive compensation package in U.S. corporate history.

This closely watched proposal aims to incentivize Musk to continue leading Tesla over the coming years, establishing a series of ambitious performance benchmarks. These include expanding Tesla's robotaxi business and growing the company's market capitalization from its current level of approximately $1 trillion to at least $8.5 trillion. The plan spans a 10-year period.

According to filing documents, the latest CEO incentive package is valued at $87.8 billion. Should Musk achieve all performance targets and receive all restricted stock awards, this figure could expand to approximately $1 trillion. The proxy statement also stipulates that Musk must participate in the board's development of a long-term CEO succession framework to be eligible for the final two components of the performance-based rewards.