Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have approved an unprecedented compensation plan for Elon Musk, potentially granting him about one trillion dollars in Tesla stock if certain goals are met.
“Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote,” according to preliminary results at Tesla's annual meeting.
The agreement stipulates Musk will receive no salary. Instead, he could earn stock valued at a trillion dollars by achieving specific milestones within the next decade. One key target is increasing Tesla's market capitalization from around $1.5 trillion to over $8.5 trillion.
For perspective, Nvidia [finance:NVIDIA Corporation], currently the world's most valuable company due to AI advancements, has a market cap of $4.83 trillion. Its CEO earns $50 million annually and holds 3.5% of the company.
Musk is already among the wealthiest individuals globally, with a net worth estimated at $460 billion according to the Bloomberg Billionaires Index.
Elon Musk was seen arriving at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024.
Author’s summary: Tesla's new compensation plan could reward Elon Musk with a historic stock package if he successfully drives massive growth, making it the largest pay deal ever.