Tesla Shareholders Approve Massive Pay Package for Elon Musk
Tesla shareholders have overwhelmingly approved a compensation package for CEO Elon Musk that could increase his ownership stake by as much as 12%, following a tense period of uncertainty over his future at the company. The proposal, backed by 75% of votes cast during Tesla’s annual meeting at its Texas Gigafactory, comes despite widespread debate
over governance issues and the size of the payout — one of the largest in corporate history. Investor anxiety over Musk’s threat to step down as chief executive if the package were rejected appeared to outweigh concerns about executive excess and corporate oversight. Under the terms of the deal, Musk’s payouts are linked to a series of highly ambitious, long-term goals. To unlock the full $1 trillion valuation target, Tesla must increase its market worth to $8.5 trillion — a sixfold jump — while boosting annual earnings 24 times to $400 billion. The plan also relies heavily on Tesla’s success in mass-selling humanoid robots and autonomous driving software subscriptions. Analysts say the approval reaffirms Musk’s tight grip over Tesla’s future, as shareholders bet on his vision to expand the company far beyond electric vehicles.
