Tesla shareholders voted Thursday in favor of CEO Elon Musk’s huge compensation package valued at nearly $1 trillion with more than 75% support, according to results announced at the company’s annual general meeting in Texas.
The board recommended approval of the plan, proposed in September, despite opposition from leading investment advisory firms Glass Lewis and ISS, which urged shareholders to vote against it, reports
The package, which consolidates Musk as the best-paid CEO in the world, provides for 12 tranches of shares that will be granted depending on the achievement of ambitious goals in the next ten years. If all targets are met, Musk could own up to 25% of Tesla’s shares, compared to around 13% currently.
The first tranche would be granted upon reaching a market capitalization of 2,000 billion dollars, while the last would require Tesla’s value to rise to 8,500 billion dollars, more than five times more than the current valuation of 1,540 billion.
The plan also includes operational goals, such as delivering 20 million vehicles, reaching 10 million active FSD (automated driving system) subscriptions, producing 1 million humanoid robots and launching 1 million autonomous taxis in commercial operation.
Tesla has so far delivered more than 8 million cars, according to the data from the documents submitted in September. The package also provides for profit thresholds, starting from 50 billion dollars of adjusted annual profit and reaching up to 400 billion. In the third quarter of this year, the company reported adjusted EBITDA of $4.2 billion.
The decision comes after the Delaware Court of Chancery struck down Musk’s previous 2018 pay package, finding it improperly awarded. The case is now on appeal to the Delaware Supreme Court.
In addition to leading Tesla, Musk manages major companies such as SpaceX, xAI (integrated into the X platform), Starlink, Neuralink and The Boring Company. He was also actively involved in politics, being a key supporter of President Donald Trump and his economic program based on the reindustrialization of the USA.
