Tesla shareholders approve $1T pay package for Elon Musk

16 days ago

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Tesla shareholders approved a $1tn compensation plan for CEO Elon Musk, potentially the largest corporate payout in history if he meets specified goals.
The plan was approved with over 75% of votes at the annual shareholder event in Austin, Texas, amid strong support from investors.
Musk emphasized the future role of Tesla's Optimus robots, claiming they could revolutionize industries from healthcare to prisons.
Critics argue the compensation package concentrates too much power in Musk, ignoring Tesla's current challenges like declining sales and safety risks.
Musk's pay package is tied to ambitious goals, including increasing Tesla's market capitalization to $8.5tn and deploying millions of autonomous vehicles and robots.
The compensation plan includes 12 tranches, requiring Musk to stay vested in Tesla for at least seven and a half years and develop a succession plan.
Musk could own 25% of Tesla's stock if all conditions are met, with shares trading near a 52-week high at about $450 per share.
Tesla must achieve $400bn in actual earnings for four consecutive quarters, a significant jump from the $4.2bn reported in Q3 2025.
Shareholders also revived Musk's 2018 compensation plan, worth $56bn, after it was invalidated by a Delaware court, leading Tesla to move its corporate home to Texas.
Legal challenges in Delaware continue to oppose Musk's compensation, with critics citing undue influence and lack of comparable contracts for other CEOs like Zuckerberg and Bezos.

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