Tesla Shareholders Approve Elon Musk's $1 Trillion Pay Package
Tesla shareholders have approved an extraordinary compensation plan for Elon Musk, allowing him to earn up to one trillion dollars in stock if the company meets specific goals over the next decade. The measure passed with 75% support at Tesla's annual shareholder meeting.
Key Details of the Pay Package
- Musk will receive no salary but can unlock Tesla stock valued at approximately $1 trillion.
- The goals include increasing Tesla's market capitalization from about $1.5 trillion to over $8.5 trillion.
- For perspective, Nvidia, currently the world's most valuable company aided by the AI boom, is worth $4.83 trillion.
Comparisons and Context
Nvidia's CEO, considered crucial to its success, earns $50 million annually and owns 3.5% of the company. Musk’s net worth is estimated at $460 billion by the Bloomberg Billionaires Index, largely due to Tesla's stock rising to about $465 per share—over 400 times its value at Tesla’s 2010 IPO.
"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."
This new deal sets a historic precedent in executive compensation, linking Musk's earnings directly to Tesla's ambitious growth targets.
Summary: Tesla’s shareholders approved a unique pay plan offering Musk up to $1 trillion in stock, contingent on Tesla reaching ambitious growth goals within ten years.