Tesla shareholders approve Elon Musk's US$1 trillion pay package
The atmosphere at Tesla's annual shareholder meeting turned celebratory when the voting results were announced. Applause and chants filled the room as Elon Musk’s unprecedented pay deal was confirmed.
Tesla revealed that over 75 percent of voting shares supported the compensation package, excluding the 15 percent stake already owned by Musk. This approval could make him the first person in history to reach trillionaire status, solidifying his position as the world's wealthiest individual.
"I super appreciate it," said Elon Musk, expressing gratitude to shareholders and the Tesla board.
The newly approved plan grants Musk up to 423.7 million additional Tesla shares over the next decade, structured as stock options rather than a salary. These shares could eventually be worth around US$1 trillion (approximately NZ$1.77 trillion), provided that Tesla attains a market capitalization of $8.5 trillion (NZ$15 trillion).
To unlock the full reward, Tesla must achieve a sequence of financial and operational milestones. The shares would be released in twelve equal tranches across ten years. If all targets are met, Musk’s potential earnings amount to roughly US$275 million (NZ$488 million) per day—a record-breaking level of executive compensation.
For Tesla to meet the required valuation of $8.5 trillion, its stock price would need to climb approximately 466 percent from current levels.
Author’s Summary
Musk’s massive stock-based pay package, approved by Tesla shareholders, could make him the first trillionaire if the company hits an $8.5 trillion market valuation over the next decade.