Tesla shareholders approve Elon Musk's trillion-dollar pay package
Tesla shareholders have voted to approve an unprecedented compensation plan for Elon Musk that could grant him up to one trillion dollars in Tesla stock. The decision was announced at Tesla’s annual shareholder meeting, where the proposal received about 75% approval based on preliminary results.
The ambitious package is entirely performance-based: Musk will receive no salary. Instead, he could unlock stock options worth roughly one trillion dollars if Tesla achieves a series of demanding financial and operational milestones within the next ten years.
Conditions for the payout
- Tesla’s market capitalization must rise from approximately 1.5 trillion dollars to over 8.5 trillion dollars.
- Additional operational and profitability targets must also be achieved.
By comparison, Nvidia, currently the world’s most valuable company with a market capitalization near 4.83 trillion dollars, pays its CEO around 50 million dollars annually. The executive also holds 3.5% of Nvidia’s shares, a fraction of Musk’s potential stake in Tesla if all goals are met.
Event appearance
Musk appeared publicly at the Tenth Breakthrough Prize Ceremony held at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024, shortly before the shareholder vote.
“Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk,” the company’s announcement stated, underscoring the scale of the decision.
According to the Bloomberg Billionaires Index, Musk’s current fortune is estimated at around 460 billion dollars, making him one of the wealthiest individuals in the world.
Author’s summary
The historic Tesla vote sets the stage for Elon Musk to potentially earn a trillion dollars, tying his compensation to Tesla’s explosive growth over the next decade.