Tesla Shareholders Approve Elon Musk's Unprecedented Pay Package
Tesla shareholders have overwhelmingly approved a remarkably large pay package for Elon Musk, with 75% of voters supporting it, announced during Tesla's recent annual shareholder meeting.
Details of the Pay Package
The package is performance-based: Musk will receive no salary, but could earn Tesla stock valued at about one trillion dollars if the company achieves specific goals within the next ten years.
- One major target is increasing Tesla’s market capitalization from roughly $1.5 trillion today to over $8.5 trillion.
- For context, Nvidia, currently the world's most valuable company boosted by the AI boom, is valued at $4.83 trillion.
- Nvidia's CEO earns $50 million annually and holds 3.5% ownership of the company.
Elon Musk’s Current Wealth
Musk is already extremely wealthy, with an estimated net worth of about $460 billion according to the Bloomberg Billionaires Index.
This fortune is largely due to Tesla's soaring stock price, which is around $465 per share—more than 400 times its value at the company's 2010 IPO.
Legal Background
A previous Musk 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.
Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.
Musk would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade.
Summary: Tesla shareholders approved an unprecedented pay package for Elon Musk, potentially worth a trillion dollars in stock if ambitious company goals are met within ten years.