Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have given overwhelming support to a pay deal for Elon Musk that could see him earning stock valued at around one trillion dollars if specific milestones are achieved over the next ten years.
Shareholder Vote and Conditions
The proposal passed with 75% of votes at Tesla's annual shareholder meeting. Musk will receive no salary but can unlock the massive stock award by meeting targets such as increasing Tesla’s market capitalization from approximately $1.5 trillion today to over $8.5 trillion.
Comparison With Industry Leaders
- Nvidia, the world’s most valuable chipmaker driven by AI growth, is valued at $4.83 trillion.
- Its CEO earns $50 million annually and owns 3.5% of the company.
Musk’s Current Wealth and Stock Performance
Elon Musk is already extremely wealthy, with an estimated net worth around $460 billion according to the Bloomberg Billionaires Index. Tesla’s stock price has soared to approximately $465 per share, a value more than 400 times the company’s IPO price in 2010.
Legal Challenges of Past Compensation
A previous pay package offering Musk $55.8 billion became subject to a prolonged legal dispute after concerns were raised about the board’s close relationship with Musk when approving it.
Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.
Musk would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade.
Author’s summary: Tesla shareholders approved an unprecedented pay plan for Elon Musk, potentially granting him stock worth nearly one trillion dollars based on ambitious future company growth targets.