Elon Musk's Trillion-Dollar Pay Package Approved by Tesla Shareholders
At Tesla's annual shareholder meeting, a pay package for Elon Musk was approved with 75% of the vote, potentially allowing him to earn stock worth about one trillion dollars.
Details of the Pay Package
The package is performance-based and Musk would receive no salary. Instead, he would unlock Tesla stock if the company meets specific targets within the next ten years. One major condition is increasing Tesla's market capitalization from approximately $1.5 trillion to over $8.5 trillion.
Market Capitalization Context
For comparison, Nvidia, the world's most valuable company boosted by the AI boom, is valued at $4.83 trillion.
“Its CEO, who is seen as pivotal to the company's success, is paid $50 million per year and owns 3.5% of the company.”
Musk's Current Wealth
Elon Musk is valued at around $460 billion, largely due to Tesla’s stock price, which is about $465 per share—over 400 times the company’s IPO price in 2010.
Previous Pay Package Controversy
A prior pay package, valued at $55.8 billion, faced legal challenges after a judge ruled that Tesla’s board was too close to Musk when designing it.
“A previous pay package that offered Musk a then-unprecedented $55.8 billion has been tied up in a lengthy court battle after a judge ruled that the board was too cozy with Musk in designing it.”
Author’s summary: Elon Musk’s new pay package links potential earnings of nearly one trillion dollars to ambitious growth targets, marking an extraordinary milestone in executive compensation.
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