Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have voted overwhelmingly in favor of an extraordinary pay package for Elon Musk, securing approval from 75% of participants at the company's annual meeting.
Details of the Pay Package
The compensation plan does not include a traditional salary. Instead, Musk will be able to unlock Tesla stock valued at approximately one trillion dollars if the company achieves specific goals over the next ten years.
- A key target is increasing Tesla’s market capitalization from around $1.5 trillion to over $8.5 trillion.
- For context, Nvidia, the world’s most valuable company driven by the AI industry, is currently valued at $4.83 trillion, with its CEO earning $50 million annually and owning 3.5% of the company.
Musk's Existing Wealth and Previous Packages
Elon Musk is already among the richest people globally, with an estimated net worth of about $460 billion according to the Bloomberg Billionaires Index. This wealth is largely due to Tesla's soaring stock price, now around $465 per share—over 400 times the value at its 2010 IPO.
A prior pay arrangement promising Musk $55.8 billion faced legal challenges after a judge ruled that Tesla’s board was too close to Musk when designing it.
Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.
Summary: Tesla’s shareholders have endorsed a landmark pay package for Elon Musk, tying his future rewards to achieving ambitious growth benchmarks that could grant him up to a trillion dollars in stock.