Tesla shareholders approve $1 trillion compensation package for Elon Musk, designed to keep him as CEO
Tesla shareholders have approved a new $1 trillion compensation package for Elon Musk. The package is designed to keep Musk at the helm of the company during a period of significant challenges. More than 75% of shareholders voted in favor of the decision. This gives Musk unprecedented control over Tesla and will be the largest corporate payout in history, reports The Verge.
Under the terms of the package, Musk will receive more than 423 million additional shares, increasing his stake in the company from 15% to 25%. To receive the full compensation, he must achieve several strategic goals: increase Tesla’s market capitalization from $1.5 trillion to $8.5 trillion over ten years, launch one million robo-taxis, sell 12 million cars, secure 10 million Full Self-Driving subscriptions, and create one million humanoid robots.
The company has previously warned that failure to approve the package could result in the loss of Musk, who has recently focused more on projects in the fields of artificial intelligence and robotics. The initiative was opposed by some large investors, including the Norwegian sovereign wealth fund, several American pension funds, and consulting firms ISS and Glass Lewis.
A previous compensation package for Musk worth more than $50 billion was declared invalid by a Delaware court due to the board’s excessive dependence on his influence. After this decision, Musk initiated the transfer of Tesla’s legal registration to Texas – a proposal that was also supported by shareholders.
Despite the company’s statements about leadership in the fields of artificial intelligence and robotics, Tesla’s situation remains unstable. Musk’s public support for Donald Trump and participation in the civil service reduction program have caused protests and a drop in sales. In addition, the end of federal tax breaks for electric vehicles may exacerbate financial difficulties.
The launch of the robotaxi service in Austin has not yet met expectations, and the Cybertruck has become a commercial disappointment. Growing competition from Chinese manufacturers is creating additional pressure and casting doubt on Tesla’s ability to achieve its ambitious goals.
Recall that on October 2, Elon Musk became the first person in history whose fortune exceeded $500 billion. Thanks to the new compensation package, he could also become the first billionaire to reach $1 trillion in assets.
