Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have approved an extraordinary compensation plan for Elon Musk, potentially worth up to one trillion dollars in Tesla stock if he fulfills specific performance goals within the next ten years.
Details of the Pay Package
- The proposal passed with approximately 75% of shareholder votes at Tesla's annual meeting.
- Musk will receive no salary but can unlock Tesla stock valued at around one trillion dollars.
- Key conditions include raising Tesla’s market capitalization from about $1.5 trillion to over $8.5 trillion.
Market Context
For perspective, Nvidia, currently the most valuable company globally due to the AI boom, holds a market value of $4.83 trillion.
Nvidia's CEO earns $50 million annually and owns 3.5% of the company.
Elon Musk’s Wealth
Musk, already one of the richest individuals worldwide, has an estimated net worth of $460 billion according to the Bloomberg Billionaires Index.
Elon Musk arrives at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024.
Author's summary: Tesla shareholders have granted Elon Musk a pay package potentially worth a trillion dollars, tied to ambitious growth targets for the company's market value over the next decade.