Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have approved a pay package for Elon Musk, potentially earning him an unprecedented one trillion dollars in stock if he achieves specific goals.
Details of the Pay Package
The package was approved with 75% of the vote during Tesla's annual shareholder meeting. It is performance-based and does not include a salary for Musk. Instead, he would unlock Tesla stock valued at approximately $1 trillion over the next decade if the company meets defined targets.
- Musk must increase Tesla's market capitalization from about $1.5 trillion to more than $8.5 trillion.
- The pay package is conditional on Tesla’s performance against these ambitious benchmarks.
Market Value Comparison
For context, Nvidia, currently the world's most valuable company boosted by the AI boom, has a market valuation of $4.83 trillion. Nvidia’s CEO earns $50 million annually and owns 3.5% of the company.
Elon Musk's Wealth
Elon Musk is already one of the richest individuals globally, with a net worth estimated at $460 billion according to the Bloomberg Billionaires Index.
“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 shareholders have approved a historic pay package for Elon Musk that could reward him with stock valued at up to one trillion dollars if strict performance targets are met over ten years.