Tesla Shareholders Approve Elon Musk's $1 Trillion Compensation Package
Tesla shareholders have voted to approve a compensation plan estimated at around $1 trillion for CEO Elon Musk, conditional on his achievement of key performance goals. The vote took place during the company’s annual shareholder meeting in Austin, Texas, where over 75% supported the proposal.
The approved 2025 CEO Performance Award ties Musk’s payout to specific targets related to Tesla’s growth and market expansion. According to a letter sent to shareholders in September, the board emphasized that these rewards would only be granted if Musk delivers exceptional financial results and continues leading Tesla in the upcoming years.
“The conditions include growing Tesla’s robotaxi segment and boosting the company’s market value by $7.5 trillion,” the letter stated.
The letter also noted that Musk must stay with the company for a period between 7.5 and 10 years to qualify for the full award. If Tesla’s performance pushes its valuation to $8.5 trillion, Musk would be entitled to roughly 12% of the company’s total shares.
Analysts estimate that the full payout under these terms would be valued near $1 trillion, making it one of the largest executive compensation packages in corporate history.
Author’s Summary
Tesla shareholders backed a record $1 trillion incentive plan for Elon Musk, tying his future earnings to long-term leadership, innovation, and Tesla’s massive market expansion goals.