Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders approved an extraordinary compensation plan for Elon Musk that could award him nearly one trillion dollars in Tesla stock if specific company goals are achieved.
Details of the Pay Package
The pay package, approved by 75% of shareholders at Tesla's annual meeting, involves no salary for Musk but grants stock incentives tied to performance targets over the next decade.
- Musk must increase Tesla's market capitalization from about $1.5 trillion to over $8.5 trillion.
- Other performance milestones must also be met for the pay package to be unlocked.
Context and Comparison
For perspective, Nvidia, currently the world's most valuable company at $4.83 trillion, pays its CEO $50 million annually, and he owns 3.5% of the company.
Elon Musk is currently valued at approximately $460 billion, according to the Bloomberg Billionaires Index.
Elon Musk attended the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles on April 13, 2024.
Financial Impact
This proposed package, unprecedented in size, reflects shareholders' confidence in Musk's leadership and Tesla's growth potential over the next ten years.
Author's summary: Tesla shareholders have endorsed Elon Musk's pay plan, potentially awarding him a trillion-dollar stock package tied to ambitious company targets, marking a historic compensation deal.