Tesla Shareholders Approve Elon Musk’s Trillion-Dollar Pay Package
Tesla shareholders have voted in favor of one of the largest executive compensation plans ever proposed, granting Elon Musk the opportunity to earn stock valued at up to one trillion dollars.
Majority Support at Annual Meeting
According to preliminary results shared during Tesla’s annual shareholder meeting, about 75% of investors approved the measure. The plan does not include a salary for Musk; instead, he can unlock immense stock bonuses if Tesla reaches a series of ambitious milestones within the next decade.
Performance Conditions
For Musk to receive the full payout, Tesla’s market capitalization must rise dramatically—from its current $1.5 trillion to more than $8.5 trillion. This would place Tesla far ahead of today’s most valuable firm, Nvidia, currently valued at $4.83 trillion.
Wealth and Market Context
According to the Bloomberg Billionaires Index, Musk’s personal fortune already tops $460 billion, largely driven by Tesla’s stock, now trading around $465 per share—over 400 times its 2010 IPO price.
Previous Pay Plan and Legal Battles
An earlier compensation package worth $55.8 billion became the center of a long-running court case after a judge concluded that Tesla’s board had been overly friendly toward Musk in approving its terms.
“Elon Musk’s compensation plan ties his personal fortune directly to Tesla’s future performance,” noted a company representative during the meeting.
Industry Comparison
Nvidia’s CEO, often credited as key to that company’s success, earns about $50 million annually and owns 3.5% of the firm—illustrating the extraordinary scale of Musk’s new deal.
Author’s summary: Tesla shareholders backed a record-setting pay plan, giving Elon Musk potential access to $1 trillion in stock if Tesla reaches an $8.5 trillion valuation within ten years.