Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
At Tesla's annual shareholder meeting, investors approved a remarkable pay package for Elon Musk, with 75% of votes in favor. The package could potentially grant Musk stock worth about one trillion dollars over the next decade, contingent on meeting specific company performance goals.
Details of the Pay Package
- Musk would not receive a salary.
- He must increase Tesla’s market capitalization from approximately $1.5 trillion to over $8.5 trillion.
- The package’s value is stock-based and depends on Tesla achieving these ambitious targets within ten years.
Context and Comparisons
For comparison, Nvidia, currently the most valuable company in the world due to the AI boom, has a market capitalization of $4.83 trillion. Its CEO earns $50 million annually and owns 3.5% of the company.
“Musk is already unfathomably wealthy, worth some $460 billion, according to the Bloomberg Billionaires Index.”
Tesla’s stock price, which drives much of Musk’s wealth, stands around $465 per share — over 400 times its value at Tesla’s 2010 IPO.
Legal Background
A prior pay package offering Musk $55.8 billion faced legal challenges after a judge ruled the board had been too aligned with Musk during its design, causing delays and disputes.
Author's summary: Tesla shareholders have overwhelmingly backed Elon Musk's unprecedented pay plan, potentially allowing him to earn stocks worth a trillion dollars by boosting Tesla’s valuation to new heights within ten years.