Elon Musk Salary Package: Tesla’s almost 75% shareholders have approved a massive pay package for Elon Musk, which could reach up to $1 trillion (₹88.68 lakh crore). According to an AFP report, a Tesla official revealed this during the company’s annual meeting. The official stated that Tesla is rapidly advancing in the fields of AI (Artificial Intelligence) and robotics, and shareholders want Elon Musk to remain at the helm. With this in mind, the shareholders have agreed to a huge pay package for him. Board members had recommended that shareholders approve the salary plan presented in September, although top proxy advisors Glass Lewis and ISS had recommended voting against it, according to a CNBC report.
What Is the Package Approved for Elon Musk?
The package approved for Elon Musk by nearly 75% of Tesla’s shareholders includes shares that will be distributed in 12 installments. Musk will receive these shares when Tesla achieves certain milestones over the next 10 years. This package will also give Musk more voting power in the company. Last year, in early 2024, Musk had requested more voting power. Over the next 10 years, Musk’s stake in Tesla will increase from about 13% to 25%, and he will own more than 423 million shares. The value of these shares could reach up to $1 trillion (₹88.68 lakh crore) if Tesla’s market cap rises to $8.5 trillion, which is the necessary target for Musk to earn the full package. Additionally, Tesla will need to meet several operational or financial goals for Musk to receive all of the shares. These shares will be granted in 12 equal installments.
What Was Elon Musk’s Response?
Elon Musk thanked the shareholders and Tesla’s board for approving the pay package. If this package had not been approved, Musk might have left the company, as he had previously hinted. According to media reports, earning all the shares in this package over the next 10 years would be like making $27.5 million per day, which is far more than any other executive’s pay package to date. According to Bloomberg’s Billionaires Index, Musk is currently the richest person in the world, with a net worth of $46.1 billion. A significant portion of his wealth is tied to his holdings in Tesla, as well as his stake in SpaceX and xAI.
