Tesla shareholders have voted in favor of a compensation plan that could potentially pay CEO Elon Musk over $1 trillion in the next decade, subject to the achievement of specific operational targets and market value milestones. The approved plan grants Musk 423,743,904 shares distributed across 12 tranches, with each tranche comprising 35,311,992 shares, contingent upon Tesla meeting objectives like delivering 20 million vehicles, securing 10 million Full Self-Driving subscriptions, deploying 1 million AI robots, launching 1 million robotaxis, and attaining a $400 billion adjusted EBITDA.
Musk’s ownership stake in Tesla could rise to 24.8% or 28.8% pending an appeal outcome related to a previous pay plan. While some argue that such compensation is necessary to incentivize Musk, others question the appropriateness of rewarding a CEO who juggles responsibilities across multiple companies.
Source: Ars Technica