Tesla Shareholders Approve Elon Musk's Massive Pay Package
Tesla shareholders have given overwhelming approval to a pay package for Elon Musk that could potentially be worth up to one trillion dollars in stock. This unprecedented compensation plan was confirmed with 75% of the vote at Tesla's annual shareholder meeting.
Details of the Pay Package
The pay package is performance-based and conditional. Musk will not receive a salary but can unlock Tesla stock valued at approximately one trillion dollars if the company meets specific targets within the next decade.
- One key target is to increase Tesla’s market capitalization from around $1.5 trillion to over $8.5 trillion.
- The package rewards long-term company growth and performance milestones rather than immediate compensation.
Context and Comparisons
For perspective, Nvidia, currently the world’s most valuable company buoyed by AI advancements, is valued at $4.83 trillion. Nvidia’s CEO earns $50 million annually and owns 3.5% of the company.
Musk himself is already extremely wealthy, with an estimated net worth of about $460 billion, according to the Bloomberg Billionaires Index.
Elon Musk arrives at the Tenth Breakthrough Prize Ceremony at the Academy Museum of Motion Pictures in Los Angeles, California, on April 13, 2024.
Summary
This compensation deal dramatically ties Elon Musk’s future earnings to ambitious growth goals, underscoring confidence in his ability to expand Tesla’s value beyond current heights.
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