Elon Musk’s $1 Trillion Tesla Pay Package Approved
Tesla shareholders have approved an unprecedented $1 trillion pay package for CEO Elon Musk, who is also the world's richest individual. The decision was made at Tesla's annual general meeting, where 75% of shareholders voted in favor of the proposal.
Musk, currently holding around 13% of Tesla’s shares, and his brother Kimbal, a board member, were permitted to vote on the compensation plan. This pay package is performance-based, requiring Musk to achieve specific ambitious goals to unlock the historic payout.
Conditions to Unlock the $1 Trillion Package
- The total payout is divided into 12 tranches of stock options.
- Each tranche vests only after reaching set financial and operational milestones.
- Market valuation targets start at $2 trillion, escalating up to roughly $8.5 trillion for full payout.
- Operational targets include delivering 20 million Tesla vehicles over the next decade, more than double Tesla’s output of the previous twelve years.
Currently, Tesla's market capitalization stands at $1.54 trillion.
Elon Musk must meet "specific financial and operational goals" to receive this historic pay, potentially becoming the first dollar trillionaire.
Summary
This approval marks an extraordinary incentive structure tying Musk's massive compensation to aggressive company growth and performance targets, reflecting Tesla's ambitious future outlook.
Author’s Note
Elon Musk’s pay package creates strong incentives aligned with Tesla’s growth, rewarding unprecedented achievements over the next decade.