Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have overwhelmingly approved an extraordinary pay package for Elon Musk, with 75% of the vote in favor, according to preliminary results from Tesla's annual meeting.
Details of the Pay Package
The package is conditional and offers no salary. Instead, Musk could unlock stock valued at around one trillion dollars if Tesla meets specific goals over the next decade.
- One key target is increasing Tesla's market capitalization from about $1.5 trillion to more than $8.5 trillion.
- For context, Nvidia, currently the most valuable company, is worth $4.83 trillion.
Comparisons and Background
Nvidia's CEO earns $50 million annually and owns 3.5% of the company, highlighting the scale of Musk's potential pay.
Elon Musk is already among the wealthiest individuals, with an estimated net worth of $460 billion according to the Bloomberg Billionaires Index, largely due to Tesla's stock soaring to about $465 per share — over 400 times its value since the 2010 IPO.
A previous pay package of $55.8 billion for Musk has been involved in a legal dispute after a judge ruled the board was excessively aligned with him in setting it.
This new arrangement signals confidence in Musk's ability to drive Tesla's growth amid ambitious goals.
Author's summary: Tesla shareholders endorsed a pay plan that could award Elon Musk nearly $1 trillion in stock if ambitious company growth targets are achieved over the next decade.