Tesla Shareholders Approve Elon Musk's Compensation Package
Shareholders voted to approve a payment package for CEO Elon Musk, valued at approximately $1 trillion, contingent on meeting specific performance targets.
Details of the Approval
- The approval took place at Tesla's annual shareholder meeting on Thursday in Austin, Texas.
- More than 75% of shareholders supported the proposal to pay Musk.
Performance Targets for Compensation
In September, Tesla’s board of directors sent a letter outlining targets Musk must meet to receive full payment, including expanding Tesla's robotaxi business and increasing market value by $7.5 trillion. Conditions include Musk remaining with Tesla for 7.5 to 10 years, and if the company's market value reaches $8.5 trillion, Musk could receive about 12% of Tesla's shares. The total value of the payment could be around $1 trillion.
Summary
Shareholders have approved a performance-based compensation package for Elon Musk, potentially worth $1 trillion, tied to Tesla's market growth and leadership tenure.