Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have overwhelmingly approved an extraordinary pay package for Elon Musk, passing it with 75% of the vote at the company's annual meeting. The package could allow Musk to earn up to one trillion dollars' worth of Tesla stock over the next decade.
Details of the Pay Package
The compensation plan is performance-based and does not include a salary. To unlock the stock rewards, Musk must meet ambitious targets, including increasing Tesla's market capitalization from about $1.5 trillion to over $8.5 trillion.
Comparison and Context
- Tesla's current stock price is approximately $465 per share, more than 400 times its value at the 2010 IPO.
- The most valuable company globally, Nvidia, is worth $4.83 trillion; its CEO earns $50 million annually and holds 3.5% of the company.
- Musk’s personal net worth is estimated at around $460 billion, largely due to Tesla’s soaring stock.
Legal Background
Musk’s previous pay package, valued at $55.8 billion, became the subject of a lengthy court dispute after a judge deemed the board too close to Musk in designing it.
"Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote."
"Musk would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade."
Author's summary: Elon Musk’s new pay package could earn him up to a trillion dollars in stock if Tesla achieves ambitious growth targets, reflecting his immense influence and previous legal challenges.