Tesla Shareholders Approve Elon Musk’s $1 Trillion Pay Package
The crowd at the shareholder meeting erupted in cheers and chants when the vote results were announced. Tesla revealed that over 75% of voting shares approved the new pay package for CEO Elon Musk during the company’s annual shareholder meeting.
The vote excluded the 15% of Tesla shares already owned by Musk. Soon after the announcement, Musk expressed his gratitude, saying,
“I super appreciate it.”
Details of the Pay Package
Musk does not receive a salary. Instead, the approved compensation consists of a stock grant that could award him up to 423.7 million additional Tesla shares over the next decade.
These shares could be valued at around US$1 trillion, assuming Tesla reaches a market capitalization of $8.5 trillion, a threshold Musk must meet to receive the full payout.
Performance Requirements
- The full package depends on Tesla hitting various operational or financial milestones.
- The stock grant would be distributed in 12 equal installments over 10 years if all targets are achieved.
Record-Breaking Pay Scale
Receiving the entire grant would amount to roughly US$275 million per day, making it the highest executive pay package in history by far.
To reach the required market cap of $8.5 trillion, Tesla shares would need to climb approximately 466% from their current price.
Summary
Elon Musk’s newly approved pay package ties his compensation to Tesla’s ambitious growth, potentially making him the world’s first trillionaire if the company meets aggressive market and operational goals.