Tesla shareholders on Thursday overwhelmingly approved CEO Elon Musk’s pay package, which could reach $1 trillion (€870 billion).
A Tesla executive said at the company’s annual meeting that the pay package received more than 75% shareholder support.
“What we’re about to start is not just a new chapter of Tesla’s future, but a whole new book,” Musk said with dancing robots in Austin, Texas. “It’s really going to be quite a story.”
Tesla shares rose about 1% in after-hours trading.
What does Musk have to do to get paid?
The $1 trillion pay package could make Musk, already the richest person on the planet, the world’s first trillionaire. But payment is conditional.
Over the next decade, Musk needs to grow Tesla’s market value to at least $8.5 trillion from the current $1.5 trillion.
Payment also depends on a series of other milestones: delivering 20 million vehicles, operating 1 million robotaxis, selling 1 million robots and earning up to $400 billion in core profits.
Bid to keep Musk at Tesla
The historic $1 trillion compensation was designed to ensure Musk’s continued service for Tesla.
Tesla’s board had argued that Musk could step down if the pay package was not approved.
The vote will also help ease investors’ concerns that Musk has become distracted by his work in politics. He previously worked as an advisor to US President Donald Trump, but left the administration in May.
Apart from Tesla, Musk also runs his own other companies, including rocket maker SpaceX and artificial intelligence startup xAI.
Many more to follow…
Edited by: Srinivas Majumdaru