Tesla shareholders have given strong support to an extraordinary pay package for Elon Musk, approving it with 75% of the vote at the company's annual meeting. This compensation plan could allow Musk to earn stock valued at nearly one trillion dollars, contingent on meeting specific performance targets over the next ten years.
Musk will not receive a traditional salary. Instead, he can unlock Tesla shares worth around one trillion dollars if the company achieves key milestones. One major target is increasing Tesla's market capitalization from approximately $1.5 trillion today to over $8.5 trillion within a decade.
For context, the world's most valuable company Nvidia, fueled by AI growth, is currently valued at $4.83 trillion. Its CEO earns a $50 million annual salary and holds 3.5% ownership in the company.
Musk's personal fortune is estimated at about $460 billion, largely driven by Tesla’s rising stock price, currently around $465 per share—over 400 times higher than the company's IPO price in 2010.
Earlier, Musk was offered a pay package worth $55.8 billion, but it became entangled in a court dispute when a judge ruled that Tesla's board was overly aligned with Musk in structuring that deal.
“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.”
“Tesla shareholders overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.”
Author's summary: Tesla's shareholders have endorsed a groundbreaking pay package for Elon Musk, which could grant him stock worth nearly a trillion dollars if ambitious company goals are fulfilled within ten years.