Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have overwhelmingly approved a pay package for Elon Musk that could grant him stock worth up to one trillion dollars if certain company milestones are met within the next decade. The proposal passed with 75% of the vote at Tesla's annual shareholder meeting.
Details of the Pay Package
Musk will receive no salary under this agreement but can unlock the stock rewards by achieving ambitious targets. One key condition is increasing Tesla's market capitalization from approximately $1.5 trillion currently to over $8.5 trillion.
Market Capitalization Comparison
- Tesla is valued around $1.5 trillion as of the announcement.
- The most valuable company today, Nvidia [finance:NVIDIA Corporation], worth $4.83 trillion, serves as a benchmark.
- Nvidia's CEO earns $50 million annually and owns 3.5% of the company.
Elon Musk's Current Wealth and Background
Musk is already one of the richest individuals, with a net worth estimated at $460 billion according to the Bloomberg Billionaires Index. His wealth has been largely driven by Tesla's rising stock price, which currently trades around $465 per share—over 400 times its value at the company's 2010 IPO.
Legal Context
A prior pay package for Musk valued at roughly $55.8 billion was delayed due to court challenges, as a judge found the board too closely aligned with Musk during its formation.
"Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote," according to preliminary results.
Summary: Elon Musk’s newly approved pay package could award him an unprecedented trillion-dollar stock compensation if Tesla achieves highly ambitious growth targets within ten years.
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