Tesla shareholders on Thursday overwhelmingly approved a pay package for CEO Elon Musk that could reach $1 trillion (€870 billion).
The pay package received more than 75% shareholder support, a Tesla official said at the company’s annual meeting.
“What we are about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book,” Musk said in Austin, Texas, along with dancing robots. “This really is going to be quite the story.”
Shares of Tesla rose about 1% in after-hours trading.
What will Musk have to do to get paid?
The $1 trillion pay package could make Musk, who is already the wealthiest person on the planet, the world’s first trillionaire. But the payout is conditional.
Over the next decade, Musk needs to increase Tesla’s market value from the current $1.5 trillion to at least $8.5 trillion.
The payout also hinges on a series of other milestones: delivering 20 million vehicles, having 1 million robotaxis in operation, selling 1 million robots and earning as much as $400 billion in core profit.
Bid to keep Musk at Tesla
The landmark $1 trillion compensation was crafted to ensure Musk’s continued service to Tesla.
The company’s board had argued Musk could quit if the pay package was not approved.
The vote will also help ease investor worries that Musk has become distracted by his work in politics. He formerly worked as an adviser to US President Donald Trump, but left the administration in May.
Besides Tesla, Musk also runs his other companies, including rocket maker SpaceX and artificial intelligence startup xAI.
More to follow…
Edited by: Srinivas Mazumdaru
