Tesla shareholders approve Elon Musk pay package after voting overwhelmingly in favour of a historic compensation plan for the company’s chief executive. The proposal could provide Musk with as much as $1 trillion in stock awards over the next decade, contingent on Tesla meeting aggressive targets including selling millions of vehicles and reaching a market valuation of $8.5 trillion.
The plan is structured into 12 tranches of stock grants which Musk would unlock by hitting both operational and financial milestones. Examples include delivering 20 million vehicles, deploying one million humanoid robots and achieving adjusted EBITDA well beyond the company’s current figures. If fully realised, Musk’s stake in Tesla could grow from roughly 15 % to as much as 25 %.
Despite the overwhelming shareholder approval (over 75 %), the vote sparked debate. Some institutional investors, such as Norway’s sovereign wealth fund, opposed the package, citing concerns over magnitude, dilution and governance implications. Proxy advisory firms also urged rejection. Tesla’s board defended the arrangement as “pay for performance”, arguing that retention of Musk is critical as the company pivots toward artificial intelligence, robotics and next-generation mobility platforms.
While the package marks the largest CEO compensation plan ever approved, analysts caution that the payout is not guaranteed. Musk must remain at the helm for a minimum number of years and meet the targets before any benefits materialise. The shareholder vote signifies confidence in Musk’s leadership, but execution risk remains significant. As Tesla embarks on this transformative path, the alignment between leadership incentives and long-term shareholder value has never been more visible.
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