Tesla shareholders have awarded CEO Elon Musk a pay package that could grant the tech entrepreneur nearly $1 trillion in compensation over the next decade, setting a new record for executive remuneration.
In a landmark vote held during Tesla’s annual shareholder meeting more than 75% of voting shareholders approved a compensation plan for CEO Elon Musk that could make him the world’s first trillionaire if all performance targets are met. The package, structured as a stock grant rather than a salary, would provide Musk with up to 423 million additional Tesla shares over the next ten years, contingent on achieving ambitious corporate milestones, including pushing Tesla’s market capitalization from its current $1.1 trillion to a staggering $8.5 trillion.
To unlock the full payout, Musk and Tesla must deliver on aggressive operational goals: the mass deployment of one million Robotaxis, commercial delivery of one million humanoid robots, and a dramatic increase in vehicle sales and subscriptions. The plan also increases Musk’s stake in Tesla from about 15% to 25%, giving him greater influence over the company’s rapidly expanding ventures in artificial intelligence and robotics.
Despite enthusiastic support from a majority of shareholders, the package has faced opposition from some major institutional investors, who cited concerns over the deal’s unprecedented scale and potential risks related to corporate governance and key-person dependency. Norway’s $2 trillion sovereign wealth fund, for instance, voted against the proposal, questioning the overall size of the award and the associated dilution for shareholders.
Tesla’s board defended the compensation plan as critical for retaining Musk, who has publicly indicated a desire for increased control to advance Tesla’s ambitious technological vision. Musk expressed gratitude following the vote, telling shareholders, “I super appreciate it.”
The record-breaking pay package comes as Musk’s prior compensation plan from 2018 remains under legal scrutiny in Delaware, with a court reviewing whether shareholders were adequately informed before approving that award. If all milestones are reached, the new arrangement could grant Musk $275 million in stock per day over the next decade, dwarfing any previous executive compensation in history.
