Tesla shareholders approve Elon Musk's trillion-dollar pay package
At Tesla’s annual shareholder meeting, investors have overwhelmingly approved a compensation plan for CEO Elon Musk that could grant him stock valued at up to one trillion dollars. According to preliminary results, about 75% of shareholders voted in favor of the proposal.
The compensation package is fully performance-based. Musk will receive no salary, but could unlock shares worth roughly one trillion dollars if Tesla meets specific objectives over the next ten years.
Key performance conditions
- Increase Tesla’s market capitalization from approximately $1.5 trillion to over $8.5 trillion.
- Reach additional operational and financial milestones set by the board.
For context, Nvidia — currently the world’s most valuable company — holds a market capitalization of about $4.83 trillion. Its CEO earns roughly $50 million per year and owns a 3.5% stake in the firm.
Musk’s current wealth
Musk is already among the wealthiest individuals globally, with an estimated net worth of $460 billion, largely driven by Tesla’s stock performance. Shares are currently priced at around $465 each, over 400 times their value since the company’s 2010 IPO.
Previous compensation controversies
A prior pay deal valued at $55.8 billion sparked a prolonged legal dispute after a court determined Tesla’s board had been overly aligned with Musk when structuring the arrangement.
“Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.”
Author’s summary
Musk’s newly approved compensation plan links his potential trillion-dollar reward to massive growth targets, blending unprecedented ambition with significant shareholder trust.