Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have approved an extraordinary pay package for Elon Musk that could grant him stock worth up to one trillion dollars if certain conditions are met.
During Tesla's annual shareholder meeting, the measure passed with 75% of the vote, according to preliminary results. The package does not include a salary for Musk but is based entirely on performance milestones tied to the company’s stock value over the next decade.
Conditions of the Pay Package
- Musk must increase Tesla's market capitalization from about $1.5 trillion to over $8.5 trillion.
- The goals are set to be achieved within ten years.
Context and Comparison
For perspective, Nvidia [finance:NVIDIA Corporation], the most valuable company currently boosted by the AI sector, has a market value of $4.83 trillion. Its CEO earns $50 million annually and owns 3.5% of the company.
Elon Musk is already worth around $460 billion, according to the Bloomberg Billionaires Index.
Photograph shows Elon Musk arriving at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles on April 13, 2024.
Author's Summary
Elon Musk’s unprecedented pay deal ties his potential earnings to Tesla's ambitious growth, reflecting immense shareholder confidence and high future expectations.