Musk’s $1 trillion pay package approved

Tesla’s CEO has dismissed critics of the shareholder-backed plan as “corporate terrorists”

Tesla shareholders have approved an unprecedented compensation package for CEO Elon Musk, potentially worth up to $1 trillion over the next decade if ambitious performance targets are met.

Under the plan, Musk could receive approximately 423.7 million Tesla shares in 12 separate tranches, each contingent on achieving milestones such as the delivery of 20 million electric vehicles, the deployment of 1 million robotaxis, and reaching $400 billion in EBITDA and an $8.5 trillion market cap.

Tesla Chair Robyn Denholm warned in recent shareholder correspondence that the company risked losing Musk’s “time, talent, and vision” if the plan were to be rejected.

While more than 75% of votes reportedly backed the package, significant institutional opposition remains. Norway’s sovereign wealth fund – the largest pension-pool investor in Tesla – publicly rejected the deal, citing concerns over dilution, “key-person risk,” and board independence.

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Musk dismissed critics of the pay package as “corporate terrorists,” calling proxy advisors such as Institutional Shareholder Services and Glass Lewis “asinine.”

Supporters argue that the deal locks Musk into Tesla for at least eight to ten years, aligning his incentives with shareholders amid the company’s push into artificial intelligence, robotics, and autonomous mobility. However, corporate governance advocates caution that such enormous compensation could set a troubling precedent.

Musk is currently the world’s richest person, with a net worth of $487.5 billion, according to Forbes. The package could raise his stake in the company to as much as 29%, up from about 15%, although failure to meet the targets could significantly reduce the payout.