Tesla shareholders approve Elon Musk's trillion-dollar pay package
Tesla shareholders have voted in favor of a compensation plan that could grant Elon Musk up to one trillion dollars in company stock, making it the most valuable individual pay package in corporate history.
The decision was made at Tesla’s annual shareholder meeting, where preliminary results showed the measure passed with 75% support. The package is structured so that Musk receives no salary or cash bonuses; instead, he will unlock stock options if Tesla achieves specific milestones over the next decade.
“Elon Musk arrives at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024.” — Etienne Laurent, AFP via Getty Images
Conditions for the payout
- Musk must raise Tesla’s market capitalization from roughly 1.5 trillion dollars to above 8.5 trillion dollars.
- The targets are to be met within ten years.
- Only upon reaching these levels would Musk be eligible to unlock the full award.
Comparison with other companies
For context, Nvidia, currently the world’s most valuable firm driven by the AI boom, is worth about 4.83 trillion dollars. Its CEO earns around 50 million dollars annually and holds 3.5% of Nvidia’s stock.
Musk’s current net worth
According to the Bloomberg Billionaires Index, Elon Musk’s personal wealth stands at approximately 460 billion dollars, making him one of the richest individuals in the world.
Author’s summary: A majority of Tesla investors approved an ambitious, performance-based pay plan that could make Elon Musk the first trillion-dollar earner if Tesla’s value soars over the next decade.