Tesla shareholders approve Elon Musk's trillion-dollar pay package
The announcement at Tesla's annual shareholder meeting was met with loud cheers as the results confirmed overwhelming support for Elon Musk's record-breaking compensation plan.
According to Tesla, more than 75 percent of shares voted in favor of the proposal, excluding the 15 percent already held by Musk. The plan could potentially make him the first-ever trillionaire if all conditions are met.
“I super appreciate it,” said Elon Musk after the approval, expressing gratitude to shareholders and the Tesla board.
Musk receives no direct salary. Instead, the compensation plan consists of a stock grant that could provide him up to 423.7 million Tesla shares over the next decade. The grant depends on achieving a series of operational and financial milestones, divided into 12 equal tranches.
If Tesla’s market value reaches US$8.5 trillion (NZ$15 trillion), those shares could be worth roughly US$1 trillion (NZ$1.77 trillion). This would make Musk’s effective daily earning rate about US$275 million (NZ$488 million), far surpassing any other executive pay package in history.
Author’s Summary
Tesla shareholders’ strong backing of Elon Musk’s ten-year stock-based pay plan could pave the way for him to become the world’s first trillionaire—if Tesla reaches its ambitious targets.