Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have overwhelmingly approved an extraordinary pay package for Elon Musk, with 75% voting in favor during the company's annual meeting. The package could potentially be worth about one trillion dollars in stock over the next decade.
Conditions of the Pay Package
Musk will not receive a salary but can unlock stock awards if Tesla meets specific targets within ten years. Key among these goals is raising Tesla's market capitalization from roughly $1.5 trillion today to over $8.5 trillion.
Comparative Market Value
- Tesla’s current market value: approximately $1.5 trillion
- Target market value for Musk’s payout: more than $8.5 trillion
- World's most valuable company for comparison: Nvidia, valued at $4.83 trillion
Nvidia's CEO earns $50 million annually and owns 3.5% of the company.
“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.”
Musk’s Existing Wealth and Previous Pay Package
Elon Musk is already extremely wealthy, with an estimated net worth of $460 billion, largely due to Tesla’s skyrocketing stock price, currently around $465 per share—over 400 times its IPO value in 2010.
A former pay package worth $55.8 billion faced legal challenges after a judge ruled that Tesla's board was too closely aligned with Musk in creating the deal.
“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
Tesla shareholders have endorsed a landmark compensation plan that ties Elon Musk's potential earnings to the company's extraordinary growth over the next decade.
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