Tesla shareholders approve Elon Musk's trillion-dollar pay package
Tesla shareholders have approved an exceptional compensation agreement for Elon Musk, potentially enabling him to gain up to one trillion dollars in Tesla stock if specific performance targets are achieved.
At Tesla’s annual shareholder meeting, preliminary results showed that 75% of votes were in favor of the plan. The package stipulates that Musk will receive no salary, but may unlock a stock award valued at roughly one trillion dollars over the next decade, provided the company meets certain ambitious benchmarks.
Elon Musk would need to elevate Tesla’s market capitalization from about $1.5 trillion to more than $8.5 trillion to qualify for the full compensation.
For context, Nvidia, currently the world’s most valuable company fueled by the AI expansion, holds a market value of $4.83 trillion. Its chief executive earns around $50 million annually and owns approximately 3.5% of the firm.
Even before this new package, Musk ranks among the wealthiest individuals globally, reportedly worth about $460 billion according to the Bloomberg Billionaires Index.
Author’s Summary
Tesla investors granted Elon Musk a bold, performance-based compensation plan worth up to one trillion dollars, reflecting massive confidence in his long-term leadership and growth vision.