Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have overwhelmingly approved a historic pay package for Elon Musk, with about 75% voting in favor during the company's annual meeting. This compensation deal could allow Musk to earn stock worth up to one trillion dollars over the next decade, contingent on meeting ambitious corporate goals.
Details of the Compensation Plan
Musk will receive no salary but can unlock a massive stock award if Tesla achieves specific targets, including increasing its market capitalization from approximately $1.5 trillion today to over $8.5 trillion within ten years.
- This target contrasts with Nvidia, currently the world's most valuable company, valued at $4.83 trillion.
- Nvidia’s CEO earns $50 million per year and owns 3.5% of the company.
- Musk’s net worth is estimated at $460 billion according to the Bloomberg Billionaires Index.
- Tesla's stock price has grown dramatically, currently around $465 per share—more than 400 times its value at the 2010 IPO.
Payout Controversies and Context
A previous Musk pay package, valued at $55.8 billion, faced legal challenges after a judge found the board too closely aligned with Musk during its approval process, indicating ongoing scrutiny over Tesla’s executive compensation practices.
Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote, according to preliminary results announced at Tesla's annual shareholder meeting.
Musk would earn no salary, but would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade.
Author's summary: Tesla shareholders have greenlit an unprecedented pay package for Elon Musk, potentially granting him stock worth one trillion dollars if he meets aggressive company growth targets within ten years.