Tesla shareholders have voted to approve a record-breaking pay package for boss Elon Musk, which will put him on track to become the world’s first trillionaire.
The deal was approved by some 75% of Tesla shareholders who cast votes at the company’s annual general meeting on Thursday (6 November).
“We believe that Elon’s singular vision is vital to navigating this critical inflection point. We also recognize the formidable nature of this undertaking and as a result, the importance of having a leader who is not only willing and capable but eager to meet this challenge,” the company’s annual proxy statement states.
“Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history. So, the Board appointed us to establish a special committee of the Board, and thereafter we began a rigorous, seven-month process that involved evaluating numerous novel compensation structures designed to align extraordinary long-term shareholder value with incentives that will drive peak performance from our visionary leader.
“Now, we are building upon the chassis of the wildly successful performance and shareholder value Elon delivered under the innovative 2018 CEO Performance Award program and have customized it for today’s Tesla to create a better world for everyone, including you, our shareholders.”
The full package is contigent on Musk meeting a series of ‘aspirationa; goals’ , including operational milestones focused on reaching Adjusted EBITDA targets (thresholds that are up to 28 times higher than the 2018 CEO Performance Award’s top Adjusted EBITDA milestone) and rolling out new or expanded product offerings (including one million Robotaxis in commercial operation and delivery of one million AI Bots), all while growing the company’s market capitalization by trillions of dollars.
“In 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions - to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.”
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