Elon Musk’s $1 Trillion Tesla Pay Package Approved
Tesla shareholders have approved a historic $1 trillion pay package for CEO Elon Musk, making it the largest executive compensation package ever awarded. The approval came during Tesla’s annual general meeting, with 75% of shareholders voting in favor.
Voting and Ownership Details
Musk, who owns about 13% of Tesla, along with his brother Kimbal Musk, a Tesla board member, were permitted to vote on the pay package.
Conditions for Receiving the Pay Package
The payout is not guaranteed; Musk must meet ambitious milestones to unlock the compensation. The package consists of 12 tranches of stock options that vest upon achieving specific financial and operational targets.
- Tesla’s valuation must grow stepwise from $2 trillion initially to about $8.5 trillion for full vesting. Currently, Tesla’s market capitalization is $1.54 trillion.
- The company must deliver 20 million Tesla vehicles cumulatively over the next decade, which is more than twice Tesla’s production over the previous 12 years.
"The $1 trillion pay package is the highest executive pay in history and could make Musk the first dollar trillionaire."
This compensation plan aligns Musk’s rewards directly with Tesla's long-term performance and growth.
Author’s summary: Elon Musk’s $1 trillion Tesla pay package is contingent on raising Tesla’s valuation massively and delivering 20 million vehicles in ten years, tying his earnings to ambitious company growth.