Tesla shareholders accepted a pay package on Thursday that might make CEO Elon Musk, already the world’s richest particular person, the world’s first trillionaire.
Tesla introduced that greater than 75% of shares voted in favor of the pay package in the course of the firm’s annual shareholder assembly. The vote didn’t embody the 15% of the corporate that Musk already owns.
Musk thanked the shareholders and the Tesla board quickly after the vote was introduced. “I super appreciate it,” he mentioned.
Musk doesn’t take any wage, however the accepted pay package comes within the type of a inventory grant that may give him as a lot as 423.7 million extra Tesla shares over the subsequent 10 years.
Those shares could possibly be value about $1 trillion, assuming the corporate reaches the $8.5 trillion market cap wanted to have Musk qualify for the complete potential payout. In addition, Tesla wants to attain a collection of both operational or monetary targets for him to get the complete variety of shares, which might be distributed in 12 equal blocks.
Getting all of the shares obtainable underneath this package over the subsequent 10 years could be the equal of incomes $275 million a day, dwarfing every other government pay package in historical past.
For Tesla to achieve the $8.5 trillion in market worth wanted, shares want to leap 466% from at this time’s inventory value. That’s additionally about 70% greater than the world’s most dear firm, Nvidia, which hit a document $5 trillion market cap final week.
Musk is already value an estimated $473 billion based on Bloomberg’s billionaire tracker, most on account of his holdings in Tesla, in addition to the opposite corporations he controls, together with SpaceX and xAI.
A no vote Thursday might have meant his exit from Tesla’s CEO workplace. Tesla’s board mentioned in a submitting that Musk had raised the potential for leaving the corporate if he didn’t get the assurances of management that the pay package might grant him.
This is a growing story. It will probably be up to date.