Tesla Shareholders Approve Elon Musk's Pay Package
Tesla shareholders have overwhelmingly approved a pay package for Elon Musk that could potentially be worth about one trillion dollars in stock. The measure was passed with 75% of the vote, according to preliminary results announced at Tesla's annual shareholder meeting.
Conditions of the Pay Package
Musk's compensation is performance-based and includes no salary. To unlock the shares valued at roughly one trillion dollars, Tesla must meet specific targets over the next decade. A key goal is to increase the company's market capitalization from about $1.5 trillion today to more than $8.5 trillion.
Market Capitalization Comparison
For perspective, Nvidia, the world’s most valuable chipmaker benefiting from the AI boom, is valued at $4.83 trillion. Nvidia's CEO receives $50 million annually and owns 3.5% of the company.
Musk's Wealth and Previous Pay Package
Elon Musk's net worth is estimated at around $460 billion, largely due to Tesla's stock price rising to about $465 per share—over 400 times its value at the company's 2010 IPO.
A former pay package promising Musk $55.8 billion was stalled in court after concerns arose about the board's close relationship with him during its design.
"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's shareholders approved an unprecedented incentive plan for Elon Musk, potentially awarding him a trillion dollars in stock if ambitious company growth targets are met within ten years.