Tesla Shareholders Approve Elon Musk's Trillion-Dollar Compensation Package
At Tesla's annual shareholder meeting, investors approved a remarkable pay deal for Elon Musk, granting him the potential to earn stock valued at around one trillion dollars, based on preliminary results indicating 75% approval.
Details of the Pay Package
The compensation is entirely performance-based, with Musk receiving no salary. Instead, he can unlock Tesla shares worth about one trillion dollars if the company achieves specific goals within the next ten years. Key among these targets is increasing Tesla's market capitalization from roughly $1.5 trillion to above $8.5 trillion.
Market Context and Comparisons
- Tesla's current market cap stands at $1.5 trillion, with its stock around $465 per share—over 400 times its value at the 2010 IPO.
- By comparison, Nvidia, the world's most valuable company at $4.83 trillion, pays its CEO $50 million annually, who owns 3.5% of the company.
Elon Musk’s Wealth and Previous Compensation
Musk is already one of the richest individuals globally, with an estimated net worth of approximately $460 billion, largely due to Tesla's stock surge.
"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."
Summary
This new package represents a monumental bet on Tesla's growth and Musk's visionary leadership in the next decade.
“Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.”
Author's Summary: Tesla shareholders have endorsed an unprecedented pay package that could earn Elon Musk up to one trillion dollars in stock, contingent on ambitious growth targets over the next decade.