Tesla Shareholders Approve Elon Musk's Compensation Package
Tesla shareholders have voted in favor of a compensation package for CEO Elon Musk, valued at about $1 trillion, based on achieving specific performance goals.
Details of the Compensation Plan
During the annual shareholder meeting on Thursday in Austin, Texas, more than 75% of shareholders approved the 2025 CEO Performance Award proposal. This package is contingent on Musk meeting performance milestones set by Tesla's board.
Performance Targets
- Expansion of Tesla's robotaxi business
- Increasing Tesla’s market value by $7.5 trillion
- Musk maintaining a leadership role at Tesla for 7.5 to 10 years
The board communicated these conditions in a letter sent to shareholders in September.
"The payment proposal requires Musk to deliver exceptional financial returns and remain in leadership, with targets such as expanding the robotaxi business and growing Tesla’s market value by $7.5 trillion."
Compensation Details
If Tesla's market value hits $8.5 trillion, Musk is expected to receive roughly 12% of the company's shares, culminating in a package worth approximately $1 trillion.
"It is stated that the value of the payment to be made would be approximately $1 trillion."
Author’s summary: Tesla shareholders approved a $1 trillion compensation plan for Elon Musk, linked to ambitious growth goals and his continued leadership over the next decade.