Elon Musk’s $1 Trillion Tesla Pay Package Approved
Tesla shareholders approved an unprecedented $1 trillion payout for CEO Elon Musk at the company’s annual general meeting on Thursday. Musk, who owns about 13% of Tesla, alongside his brother Kimbal, voted on the proposal. This pay package represents the largest executive compensation in history.
Conditions for Earning the Pay Package
The payout is conditional and divided into 12 tranches of stock options. Each tranche will vest only when Musk meets ambitious financial and operational targets over the coming decade.
- Tesla’s valuation must increase in phases, starting from $2 trillion and reaching approximately $8.5 trillion for full vesting.
- Operationally, Tesla must deliver a total of 20 million vehicles over ten years, more than double the company’s output in its first twelve years.
Currently, Tesla’s market capitalization stands at $1.54 trillion.
"The payout proposal was approved by a majority of 75 per cent of Tesla shareholders."
"The $1 trillion pay package is not just another handout; Musk has to fulfil specific ambitious targets to receive it."
Summary
This pay package aims to incentivize Elon Musk with performance-based milestones that, if fully realized, would cement his position as the first trillionaire in history through Tesla’s growth.
Author’s Summary
Elon Musk’s $1 trillion Tesla compensation depends on Tesla reaching ambitious vehicle delivery and market valuation goals, marking a historic performance-based pay plan.