Tesla Shareholders Approve Elon Musk's Trillion-Dollar Compensation Package
Tesla's shareholders have voted overwhelmingly to approve a pay package for Elon Musk that could grant him stock valued at approximately one trillion dollars, contingent on meeting specific company goals.
The measure passed with 75% of the vote during Tesla's annual shareholder meeting. Under this plan, Musk will receive no salary but can unlock the enormous stock rewards if Tesla hits certain milestones within the next decade.
Key Conditions and Goals for Musk's Compensation
- Musk must increase Tesla's market capitalization from around $1.5 trillion to over $8.5 trillion.
- The targets are designed to align Musk's rewards directly with the company's long-term growth.
Context and Comparison
By way of comparison, Nvidia—the world's most valuable company amid the AI boom—is currently valued at $4.83 trillion. Nvidia’s CEO earns $50 million annually and owns 3.5% of the company.
Elon Musk is already one of the richest individuals globally, with an estimated net worth of about $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 earn no salary, but would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade."
Elon Musk at a Public Event
Elon Musk was present at the Tenth Breakthrough Prize Ceremony held at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024.
Photo credit: Etienne Laurent/AFP via Getty Images
Summary
This unprecedented pay package ties Elon Musk’s earnings to Tesla’s ambitious growth targets, reflecting investor confidence in his ability to propel the company’s value to new heights.