Tesla Shareholders Approve Elon Musk’s Trillion-Dollar Pay Package
At Tesla's annual shareholder meeting, investors approved an unprecedented compensation plan for CEO Elon Musk, granting him the potential to earn up to one trillion dollars in Tesla stock. The decision passed with about 75% support, based on preliminary results released on November 6, 2025.
Conditional Stock-Based Compensation
The package does not include a salary. Instead, Musk can unlock the stock options only if Tesla reaches a series of ambitious milestones over the next decade. One key condition requires increasing Tesla’s market capitalization from roughly $1.5 trillion today to more than $8.5 trillion.
Comparison with Industry Leadership
For context, Nvidia, currently the most valuable company globally and a major player in the AI-driven semiconductor market, is valued at about $4.83 trillion.
“Its CEO, who is seen as pivotal to the company's success, is paid $50 million per year and owns 3.5% of the company.”
Musk’s Current Wealth and Previous Compensation
According to the Bloomberg Billionaires Index, Musk’s net worth is approximately $460 billion, largely due to Tesla’s stock performance, now trading near $465 per share—over 400 times its IPO value in 2010.
A prior pay agreement worth $55.8 billion has been legally disputed, as a court determined Tesla’s board had been overly aligned with Musk in structuring the deal.
Author’s Summary
Tesla investors have endorsed a bold pay plan potentially granting Elon Musk a trillion dollars in stock if he propels the company’s valuation to record highs over the next ten years.