Elon Musk Salary: What Tesla CEO Earns After Pay Package Vote

Tesla shareholders have voted to reinstate a monumental compensation package for CEO Elon Musk. The decision was confirmed following a shareholder vote on Thursday. This marks one of the largest corporate pay deals in history.

The package had been previously invalidated by a Delaware court. Tesla’s board argued the new vote was essential to keep Musk motivated and focused on the company’s ambitious goals.

Unprecedented Performance Targets Set for Musk

The approved plan grants Musk stock options worth over 423 million shares. To fully vest this compensation, Tesla must achieve a series of staggering milestones. These targets include increasing the company’s market value to $8.5 trillion.

Musk must also oversee the launch of one million robotaxis. Other goals involve selling 12 million vehicles annually and deploying one million humanoid robots. According to Reuters, the package could ultimately be worth approximately $1 trillion.

Significant Investor Support and Notable Opposition

The vote saw strong support from a majority of shareholders. Reports indicate more than 75% of votes cast were in favor of the proposal. This endorsement strengthens Musk’s position as he steers Tesla through a competitive market.

However, the decision faced significant opposition. Major institutional investors like Norges Bank voted against the plan. Proxy advisers Glass Lewis and ISS also recommended rejection, citing concerns over the package’s enormous scale and governance issues.

Broader Impact on Tesla’s Future and Market

This vote concludes a lengthy legal and corporate battle. A Delaware judge had voided a previous $50 billion pay package earlier this year. The controversy prompted Musk to successfully relocate Tesla’s legal home to Texas.

The compensation plan is designed to tie Musk’s wealth directly to Tesla’s performance. It significantly increases his ownership stake in the company. This alignment aims to ensure his long-term commitment to Tesla’s growth amid his other ventures.

Analysts suggest the approval provides stability for Tesla’s leadership. It allows Musk to concentrate on achieving the company’s ambitious technological and production goals. The final vote tally will be detailed in an upcoming SEC filing.

This shareholder decision solidifies Elon Musk’s financial incentives for the next decade. The approved Tesla Musk pay package is now one of the most significant in corporate history. Its success hinges entirely on the company’s future performance.

Thought you’d like to know

What is the total value of Elon Musk’s new pay package?

The package could be worth around $1 trillion. This value is contingent on Tesla reaching an $8.5 trillion market capitalization. Musk will receive the compensation in stock options, not cash.

What conditions must Tesla meet for Musk to get paid?

Musk must guide Tesla to a market value of $8.5 trillion. The company must also launch one million robotaxis and sell 12 million vehicles per year. Achieving these ambitious goals will unlock the full compensation.

Did all shareholders support the pay package?

No, several major investors voted against it. Institutions like Norges Bank and public pension groups opposed the plan. Influential advisory firms also recommended shareholders reject the proposal.

Why was Musk’s previous pay package canceled?

A Delaware court voided the earlier $50 billion deal. The judge ruled that the board lacked independence during the negotiation process. This led to the new shareholder vote and Tesla’s move to Texas.

How does this pay package affect Tesla’s future?

The plan is designed to secure Musk’s long-term focus on Tesla. It ties his personal wealth directly to the company’s performance. This aims to drive growth in vehicle sales, self-driving technology, and robotics.