Tesla Shareholders Approve Elon Musk's Trillion-Dollar Stock Pay Package
Tesla shareholders have given overwhelming approval to an extraordinary pay package for Elon Musk, with 75% voting in favor according to preliminary results from the company's annual meeting.
Details of the Pay Package
The agreement is performance-based and does not include a salary for Musk. Instead, he can unlock Tesla stock valued at approximately one trillion dollars if the company meets specific benchmarks within the next ten years.
- One key target is to increase Tesla’s market capitalization from about $1.5 trillion currently to over $8.5 trillion.
- For context, Nvidia, the world’s most valuable company amid the AI surge, is valued at $4.83 trillion, with its CEO earning $50 million annually and owning 3.5% of the company.
Musk's Wealth and Previous Compensation Controversy
Elon Musk’s fortune is estimated at around $460 billion, largely due to Tesla’s stock price rise to about $465 per share, over 400 times its value at the company’s 2010 IPO.
“A previous pay package that offered Musk a then-unprecedented $55.8 billion has been tied up in a lengthy court battle after a judge ruled that the board was too cozy with Musk in designing it.”
This new package reflects continued confidence in Musk’s leadership while setting ambitious financial goals for Tesla’s future growth.
Author's summary: Tesla’s shareholders have approved a groundbreaking, performance-based pay package for Elon Musk that could reward him with stock worth a trillion dollars if ambitious company targets are achieved.