Texas [US], November 7 (HBTV): Tesla shareholders have approved a massive pay package for CEO Elon Musk that could make him the world’s first trillionaire if the company meets its ambitious growth targets, CNN reported.
At Tesla’s annual shareholder meeting on Thursday, over 75 per cent of shareholders voted in favour of Musk’s stock-based compensation plan, excluding the 15 per cent stake he already owns. The announcement was met with cheers and chants from attendees.
‘I super appreciate it,’ Musk told shareholders after the vote, expressing gratitude to them and Tesla’s board for their support, as per CNN.
Unlike most CEOs, Musk does not take a salary. His earnings come entirely through stock options, and this new package could grant him up to 423.7 million Tesla shares over the next decade — a potential payout worth around USD 1 trillion if the company achieves a market value of USD 8.5 trillion.
That target would require Tesla’s stock price to rise by 466 per cent from its current level, which would make it more valuable than Nvidia, currently the world’s largest company with a valuation of USD 5 trillion.
If Musk secures all 12 tranches of the stock award, his earnings would amount to USD 275 million per day — marking the largest executive pay deal ever recorded.
Tesla’s board had earlier warned shareholders that rejecting the pay plan might prompt Musk to walk away from the company. In a regulatory filing, the board noted that Musk had expressed doubts about continuing as CEO without greater assurances of control tied to the compensation plan.
Despite the approval, Tesla faces a challenging year ahead as sales and profits have dropped sharply in 2025 due to slowing EV demand and reduced US government incentives for electric vehicles, CNN reported.
(ANI)