Tesla shareholders have approved $1 trillion pay package for CEO Elon Musk. This one-of-a-kind package could not only make him the first trillionaire in the world but will take up to the next decade to fructify. Tesla also has to hit certain financial and production targets for the trillion dollar pay package to come into effect, however, what remains is that this is a new and unique negotiation by a chief executive officer. Elon Musk had said that he would probably leave Tesla if he did not receive the package.
Tesla held its annual shareholders meeting in Austin, Texas on Thursday, and investors voted on the nearly $1 trillion package. The company said that Elon Musk’s pay package received overwhelming support as 75% among voting shares were in favor of the proposal.
Tesla CEO danced on stage as investors and shareholders chanted his name.
Musk said, “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.”
The CEO added, “Other shareholder meetings are snoozefests, but ours are bangers. Look at this. This is sick.”
CWEB analysts break down the package for business fans. Elon Musk will get 12 tranches of shares in the next decade if Tesla reaches certain milestones by 2035. He will also get an increase in voting power in company matters. He will not receive a salary under the deal.
Elon Musk currently owns about 13% of the total Tesla shares. This stake will increase to about 25% and he will add over four 23 million shares to his existing holdings. Elon Musk is already the richest man in the world. If he achieves the milestones set for Tesla, he could possibly become the first trillionaire in the world.
