In a historic move, Tesla shareholders have approved an unprecedented $1 trillion compensation plan for CEO Elon Musk the largest pay package ever granted to a corporate executive.
The plan, backed by more than 75 percent of investors in a preliminary vote, could increase Musk’s ownership stake in Tesla from about 12 percent to roughly 25 percent. The full compensation package will vest by 2035, contingent on the company achieving a series of highly ambitious financial and operational milestones.
To unlock the full payout, Tesla must reach a staggering $8.5 trillion market valuation within the next decade. The targets also include delivering 20 million vehicles, deploying 1 million humanoid robots, launching 1 million autonomous robo-taxis, and selling 10 million subscriptions to its “Full Self-Driving” software within a single quarter.
Analysts say the goals would require Tesla to dominate not just the global electric vehicle market, but also to lead in emerging sectors such as robotics and autonomous driving technology.
“Tesla will have to be the market leader not just in the U.S. but also Europe and other regions,” said Seth Goldstein, senior equity analyst at Morningstar. “The company’s success will hinge on its ability to extend its innovation beyond cars.”
If Tesla achieves these milestones, the compensation package would cement Musk’s position as one of the most richly rewarded and influential executives in corporate history.
