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Tesla Investors Approve Musk’s Performance-Tied Pay Worth Up to $1 Trillion

The board pitched the plan as vital to retaining Musk for an autonomy-first strategy.

Overview

  • More than 75% of votes cast supported the package at the Nov. 6 annual meeting in Austin, according to Tesla’s general counsel.
  • The award provides up to 423.7 million shares over 10 years in 12 tranches tied to market-cap and operational milestones, not cash salary.
  • Full vesting requires an $8.5 trillion valuation plus goals such as 20 million vehicle deliveries, 10 million Full Self-Driving subscriptions, 1 million robotaxis and 1 million humanoid robots.
  • Musk must remain CEO for roughly 7½ years for any shares to vest, and his ownership could rise toward about 25% if all targets are achieved.
  • Proxy firms ISS and Glass Lewis and investors including Norway’s sovereign wealth fund opposed the deal, highlighting ongoing governance and dilution concerns.