Tesla Shareholders Approve Elon Musk's Billion-Dollar Pay Package
Tesla shareholders have approved an extraordinary pay package for Elon Musk, potentially allowing him to earn stock valued at about one trillion dollars. The measure passed with 75% of the vote during Tesla's annual shareholder meeting.
Conditions of the Pay Package
Musk will receive no salary but can unlock Tesla stock worth roughly $1 trillion if the company meets specific goals within the next decade. One key target is raising Tesla's market capitalization from approximately $1.5 trillion currently to over $8.5 trillion.
Market Comparison and Musk’s Wealth
- Tesla's current market cap is $1.5 trillion.
- The world’s most valuable company, Nvidia, is valued at $4.83 trillion, with its CEO paid $50 million annually and owning 3.5% of the company.
- Musk's personal net worth is around $460 billion, largely due to Tesla’s stock price rising to about $465 per share—over 400 times its value at the 2010 IPO.
Legal Background on Previous Pay Packages
A prior $55.8 billion pay package for Musk is currently tied up in a court battle after a judge ruled the board was too closely aligned with him in its design.
This new compensation plan marks an unprecedented milestone in executive pay, linked directly to Tesla’s ambitious growth targets over the coming decade.
Author’s summary: Tesla shareholders have approved a trillion-dollar stock pay package for Elon Musk, contingent on dramatic company growth, highlighting Musk’s extraordinary wealth and legal challenges.