Tesla Shareholders Approve Elon Musk's Trillion-Dollar Pay Package
Tesla shareholders have approved a pay package for Elon Musk that could enable him to earn up to one trillion dollars in stock over the next decade.
Shareholder Vote and Package Details
At Tesla's recent annual meeting, the pay package was passed with 75% of the vote. The package does not include a salary for Musk but offers stock compensation contingent on Tesla meeting specific goals.
Performance Targets
- Musk must increase Tesla's market capitalization from about $1.5 trillion to over $8.5 trillion within ten years.
- This goal is highly ambitious, especially considering that Nvidia, currently the world's most valuable company valued at $4.83 trillion, serves as a benchmark.
Comparative Context
Nvidia's CEO earns $50 million annually and owns 3.5% of the company, highlighting a stark contrast to Musk's potential payout.
Musk's Current Wealth
Elon Musk is already among the richest people globally, with an estimated net worth of $460 billion according to the Bloomberg Billionaires Index. This wealth largely stems from Tesla's stock price, which is approximately $465 per share—over 400 times its value at the 2010 IPO.
Legal Background
Musk's previous pay package, valued at $55.8 billion, faced legal challenges after a judge found the board to be too aligned with Musk during its approval process.
Tesla shareholders have overwhelmingly approved a pay package of extraordinary proportions for Elon Musk, passing the measure with 75% of the vote.
Author's summary: Tesla shareholders have voted to approve a record-breaking pay plan for Elon Musk, potentially worth a trillion dollars if ambitious market value targets are met within ten years.