Tesla Shareholders Approve Elon Musk's Massive Pay Package
Tesla shareholders approved a compensation plan for CEO Elon Musk on Thursday, potentially making him the world's first trillionaire.
The pay package was backed by over 75% of voting shares during Tesla's annual shareholder meeting. This vote excluded the 15% ownership Musk already holds.
"I super appreciate it," Musk said, expressing gratitude to shareholders and the Tesla board.
Details of the Pay Package
- Musk does not receive a traditional salary.
- The compensation is structured as a stock grant, potentially awarding him up to 423.7 million additional Tesla shares over 10 years.
- The shares could be valued at about US$1 trillion if Tesla reaches a market capitalization of $8.5 trillion.
- Rewards depend on Tesla meeting a series of operational or financial targets.
- The shares would vest in 12 equal installments over the decade.
Significance of the Pay Package
If Musk attains all shares under this agreement, it equates to earning roughly US$275 million daily, surpassing any executive compensation in history.
To reach the $8.5 trillion market value that unlocks the full payout, Tesla's stock price must rise about 466% from its current level.
Photo:
The crowd at the meeting broke into cheers and chants when the results were announced. Photo: AFP / Allison Robbert
Summary: Tesla shareholders' approval of Elon Musk's unprecedented stock-based pay package ties his compensation to ambitious company milestones, potentially creating the first trillionaire in history.