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Tesla shareholders have approved a historic $1 trillion pay package for CEO Elon Musk, marking the largest compensation deal ever recorded. The decision, announced Thursday (November 6), received support from over 75% of shareholders, as stated by Tesla's general counsel, Brandon Ehrhart, during the company's annual meeting.
The package, which spans 10 years, is contingent on Tesla achieving several ambitious milestones, including selling 1 million humanoid robots and reaching a market capitalization of $8.5 trillion. Musk, who is already the world's wealthiest individual with a net worth of approximately $473 billion, could become the first trillionaire if these targets are met. The compensation is structured in 12 tranches, with the first being awarded if Tesla hits a $2 trillion valuation and delivers 20 million vehicles.
Despite the overwhelming approval, the package has faced criticism. Norway's sovereign wealth fund and key advisory firms like ISS and Glass Lewis opposed the deal, citing concerns over its size and potential dilution of existing shares.
Musk, who must remain Tesla's CEO for at least seven and a half years to vest any shares, emphasized the importance of maintaining control over Tesla's future projects, such as the development of robot armies and self-driving taxis. The package does not require Musk to limit his political involvement, which some shareholders linked to Tesla's recent sales challenges.
Despite these challenges, Tesla's board believes Musk's leadership is vital for the company's ambitious goals.