Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have approved a compensation plan for Elon Musk that could enable him to earn up to one trillion dollars in Tesla stock, contingent on meeting specific goals over the next decade.
Meeting Details and Voting Outcome
At Tesla's annual shareholder meeting, the pay package was passed with 75% of the vote, reflecting overwhelming support for the proposal.
Compensation Structure and Conditions
Musk will receive no salary but can unlock Tesla stock worth approximately one trillion dollars if the company achieves key milestones. One major target is increasing Tesla's market capitalization from about $1.5 trillion to over $8.5 trillion.
Comparison with Other Companies
For context, Nvidia, currently the world's most valuable company with a $4.83 trillion valuation fueled by AI growth, compensates its CEO with $50 million annually and a 3.5% ownership stake.
“Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.”
“That package is conditional: Musk would earn no salary, but would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade.”
Musk's personal fortune stands at around $460 billion, according to the Bloomberg Billionaires Index.
Photo Caption
Elon Musk arriving at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles on April 13, 2024.
Author's summary: Tesla shareholders have approved an unprecedented pay package for Elon Musk, potentially awarding him $1 trillion in stock if Tesla's valuation surpasses $8.5 trillion within ten years.