Tesla Shareholders Approve Musk's Massive Pay Package
Tesla shareholders have approved a monumental pay package for CEO Elon Musk, potentially making him the world's first trillionaire. The approval was announced during Tesla's 2025 Annual Shareholder Meeting held on Thursday.
“Finally, on the 2025 CEO performance award to our founder and CEO, Elon Musk, with over 75% voting in favour. Approved,” said Brandon Ehrhart, general counsel and corporate secretary at Tesla.
Musk, who attended the meeting, expressed his gratitude to the shareholders. He said,
“I'd like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super appreciate it.”
Details of the Pay Package
The newly approved compensation plan is a stock grant that awards Musk a significant number of additional Tesla shares if he achieves a series of ambitious financial and operational targets over the next decade. This milestone aligns with the company's growth goals and Musk's performance incentives.
A special committee of the Tesla board introduced the package in September, highlighting its challenging criteria. They noted that unlike 2018, when Musk had to grow Tesla by billions, in 2025 he must propel Tesla to nearly USD $7 trillion in value to qualify for the award.
Board Statement on the Package
“In 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions — to be exact, he must create nearly USD $7 trillion,” explained the committee.
This pay package underlines Tesla's confidence in Musk's leadership and aims to motivate unprecedented company growth.
Summary
The extraordinary stock-based pay plan approved by Tesla shareholders sets a high bar for Elon Musk, aligning his compensation directly with Tesla's future market success and potentially making him the first trillionaire.
Author's summary: Tesla's shareholders have endorsed a record-breaking stock package for Elon Musk, tying his pay to ambitious growth targets that could transform him into the first trillionaire.