Tesla Shareholders Greenlight Musk’s Unprecedented $1 Trillion Compensation Deal
Tesla shareholders have cast an overwhelming vote in favor of CEO Elon Musk’s groundbreaking compensation package. This package, which could potentially reach a staggering $1 trillion over the next decade, received more than 75% support. It represents the largest executive compensation deal in corporate history.
The ambitious package ties Musk’s compensation to Tesla achieving an $8.5 trillion market capitalization. This figure is about six times its current value. To earn the full amount, Tesla must also hit specific operational milestones. These include:
- Delivering 20 million vehicles
- Deploying 1 million robotaxis
- Selling 1 million humanoid robots
Musk, who is already the world’s richest person with an estimated net worth of $473 billion, would receive the compensation in the form of additional Tesla shares. This would increase his ownership stake from 13% to approximately 25% of the company.
The deal comes after a Delaware court previously overturned a similar $56 billion package from 2018. During Tesla’s annual meeting in Austin, Texas, Musk celebrated the approval. He emphasized his vision for Tesla’s robotic future, claiming that humanoid robots “will eliminate poverty” and could become “bigger than cell phones“.
While critics opposed the package as excessive, supporters argued it was necessary to retain Musk’s leadership during Tesla’s crucial transition to AI and robotics.
Source: CNBC