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Tesla Shareholders Approve $1 Trillion Performance-Based Pay Plan for Elon Musk

The all-stock award vests only upon Tesla reaching towering market‑cap plus product milestones over the next decade.

Overview

  • Investors voted roughly 75% in favor at the Austin annual meeting, clearing the largest executive compensation package ever proposed.
  • The plan splits into 12 tranches tied to valuation thresholds that start at $2 trillion and build to $8.5 trillion, alongside demanding operational goals.
  • The first tranche unlocks at a $2 trillion market cap, with later steps requiring $500 billion increases up to $6.5 trillion and $1 trillion jumps to reach $8.5 trillion.
  • If all milestones are met, Musk could receive about 423 million shares over 10 years, lifting his stake from roughly 13% to about 25%, with no traditional salary.
  • Operational targets include 20 million vehicle deliveries over the next decade, 10 million active Full Self‑Driving subscriptions, and launches of 1 million robotaxis and 1 million Optimus humanoid robots; shareholders also re‑elected three directors and adopted annual board elections despite opposition from ISS, Glass Lewis, and Norway’s sovereign wealth fund.