Elon Musk Nears Trillionaire Status as Tesla Shareholders Approve Landmark Pay Package
Tesla CEO’s stock based compensation plan could grant up to 423.7 million shares, potentially worth $1 trillion if growth targets are met.
US, Nov 7 : Tesla shareholders have approved a massive stock based compensation plan for CEO Elon Musk, potentially making him the world’s first trillionaire if the company achieves ambitious growth targets, CNN reported.
At Tesla’s annual shareholder meeting on Thursday, over 75% of shareholders voted in favor of Musk’s plan, excluding the 15% stake he already owns. The announcement was met with cheers and applause in the room. “I super appreciate it,” Musk told shareholders, thanking them and the board for their support.
Unlike most CEOs, Musk does not take a salary. His compensation comes entirely through stock options. Under the new plan, he could receive up to 423.7 million Tesla shares over the next decade, a payout potentially worth around $1 trillion if Tesla reaches a market value of $8.5 trillion. Achieving this would require a 466% rise in Tesla’s stock price, making it more valuable than Nvidia, the world’s largest company at $5 trillion.
If Musk secures all 12 tranches of the award, his earnings would equate to $275 million per day, marking the largest executive pay deal in history. Tesla’s board had warned that rejecting the pay package could prompt Musk to step down as CEO, noting that he sought greater assurances of control.
Despite the approval, Tesla faces challenges in 2025, with sales and profits declining due to slower electric vehicle demand and reduced US government incentives, CNN reported.
