Tesla shareholders have approved an unprecedented $1 trillion pay package for CEO Elon Musk, marking one of the largest compensation plans in corporate history. The proposal, structured around 12 performance-based milestones, could make Musk the world’s first trillionaire if achieved.
Under the plan, Musk will be eligible for 423.7 million Tesla shares nearly 12 percent of the company’s current equity contingent upon Tesla’s market value soaring from $1.1 trillion to $8.5 trillion. Each tranche will vest only if Tesla meets both market and operational goals, including the production of 20 million vehicles annually, deployment of one million robotaxis, and mass production of its humanoid robot, Optimus.
Tesla’s board defended the package as crucial for retaining Musk’s leadership during a transformative phase, positioning the firm beyond electric vehicles into robotics and artificial intelligence. However, governance experts and investor groups have expressed concern over the plan’s magnitude, calling it excessive and risky for shareholders.
Musk, in his post-vote address, claimed that Tesla’s AI and robotics ventures could “eliminate poverty” in the long run. Yet, the move has reignited global scrutiny over corporate power concentration and executive rewards, symbolising ambition vast enough, as some critics note, “to buy Singapore or build a city on Mars.”
