Tesla Shareholders Approve Elon Musk's $1 Trillion Pay Package
At Tesla's annual shareholder meeting, over 75 percent of shareholders voted in favor of a pay package for CEO Elon Musk, potentially making him the world's first trillionaire.
The crowd at the meeting broke into cheers and chants when the results were announced.
This vote excluded the 15 percent of Tesla stock already owned by Musk. He expressed gratitude shortly after the approval, saying,
"I super appreciate it."
Details of the Pay Package
- Musk does not take a salary; his compensation is a stock grant.
- The package could award him up to 423.7 million additional Tesla shares over the next 10 years.
- The value of these shares could reach about US$1 trillion if Tesla achieves a market capitalization of $8.5 trillion.
- To earn the full payout, Tesla must meet specific operational or financial goals.
- The shares would be distributed in 12 equal blocks as targets are met.
If Musk earns all the shares, it would equal approximately US$275 million per day, making it the largest executive pay package ever recorded.
For this to happen, Tesla's stock price must rise 466 percent from current levels to reach the $8.5 trillion market cap target.
Summary
This unprecedented pay package reflects Tesla's ambitious growth goals and Musk's pivotal role in the company's future success.