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Tesla Shareholders Approve Musk’s Pay Plan Worth Up to $1 Trillion

Texas incorporation rules let Musk vote his full stake, helping the board secure approval despite notable institutional dissent.

Overview

  • More than 75% of participating shares backed the plan at Tesla’s Austin annual meeting, with Musk’s existing stake excluded from the tally.
  • The award grants up to 423.7 million shares in 12 tranches over 10 years, contingent on hitting market‑cap and operational goals that include an $8.5 trillion valuation.
  • If all milestones are met, Musk’s ownership could climb to roughly 25%, increasing his voting influence at the company.
  • Proxy advisers ISS and Glass Lewis and investors including Norway’s sovereign wealth fund and CalPERS opposed the deal, citing size, dilution and key‑person risk.
  • The package serves as a successor to Musk’s 2018 award voided by a Delaware court, leaving legal questions unresolved as payouts depend on future performance milestones.