Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have approved an extraordinary compensation plan for Elon Musk that could enable him to earn stock worth up to one trillion dollars if certain performance targets are met.
Details of the Pay Package
The pay package was approved by 75% of voters at Tesla's annual shareholder meeting. It is designed as a conditional stock plan, meaning Musk would not receive a salary, but could unlock shares valued at about $1 trillion over the next decade if Tesla achieves specific milestones.
- Musk must increase Tesla's market capitalization from around $1.5 trillion to over $8.5 trillion.
- The targets must be met within ten years for the stock awards to vest.
Context and Comparison
For reference, Nvidia—the current most valuable company boosted by the AI boom—is worth approximately $4.83 trillion. Nvidia’s CEO, considered crucial to its success, earns $50 million annually and owns 3.5% of the company.
Elon Musk's Wealth Background
Musk is already extremely wealthy, with a net worth estimated at $460 billion according to the Bloomberg Billionaires Index.
Tesla shareholders voted Thursday on a pay package that could award Musk a trillion dollars' worth of Tesla stock if he meets certain targets.
That package is conditional: 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.
Summary: Tesla shareholders have overwhelmingly backed a groundbreaking pay deal for Elon Musk that links his compensation to ambitious company valuation goals over the next ten years.