Elon Musk’s $1 Trillion Pay Package Approved by Tesla Shareholders

Tesla shareholders have approved a monumental $1 trillion pay package for CEO Elon Musk. The decision was finalized in a vote on Thursday. This marks the largest compensation deal ever awarded to a corporate leader.The approval comes amid concerns that Musk might have stepped down as CEO if the proposal failed. The package is designed to keep Musk deeply invested in Tesla’s future growth and ambitious projects.

How Musk’s Pay Compares to Other Tech Titans

The new agreement paves the way for Musk to potentially become the world’s first trillionaire. According to Forbes, he is already the richest person with a net worth of $491.4 billion. This colossal payout stands in stark contrast to the compensation of other tech leaders.In comparison, Amazon founder Jeff Bezos holds a net worth of $253.3 billion. This has sparked widespread curiosity about his own compensation structure while he was CEO.

The Philosophy Behind Modest CEO Pay

Jeff Bezos reportedly took home a salary of just $80,000 per year as Amazon’s CEO. He has publicly explained his reasoning for refusing higher compensation. At the 2024 New York Times DealBook Summit, Bezos stated he did not feel good about taking more money.He felt his existing significant ownership stake was incentive enough. This philosophy highlights a different approach to executive compensation compared to Tesla’s new deal with Musk.Bloomberg reports that Tesla shares rose following the announcement. The stock was up 1.8% in postmarket trading after the decision became public.

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The approval of the Elon Musk $1 trillion pay package sets a new precedent in corporate governance. It firmly ties the CEO’s compensation to the company’s most ambitious long-term goals.

Thought you’d like to know

What does Elon Musk get in his new pay package?

The package is designed to expand Musk’s stake in Tesla to 25% or more over the next decade. He must hit specific targets related to market value and new business ventures to receive the full payout.

How much was Jeff Bezos paid as Amazon CEO?

Jeff Bezos reportedly received an annual salary of $80,000 during his tenure as CEO. He declined larger compensation packages due to his already substantial ownership of Amazon stock.

Why did Tesla shareholders approve this pay package?

Shareholders voted in favor to ensure Musk remains committed to Tesla’s long-term strategy. There was a significant concern that he might reduce his role or leave if the package was rejected.

What does Musk need to do to get the full $1 trillion?

He must deliver on targets to dramatically increase Tesla’s market value. He also needs to successfully revive its car business and launch its robotaxi and robotics divisions.

How did the market react to the news?

Tesla’s stock price saw an immediate positive bump. Shares rose 1.8% in postmarket trading following the shareholder approval announcement.