Elon Musk Will Receive $1 Trillion in Compensation from Tesla
Elon Musk (Photo)
Tesla's shareholders have approved a compensation package worth $1 trillion for the company's co-founder and CEO, Elon Musk. The voting results were announced at Tesla's shareholder meeting, with over 75% of shareholders supporting this compensation plan.
Tesla's board had previously proposed the largest compensation package in history to Musk, amounting to nearly $1 trillion in September. The plan stipulates that this billionaire will receive about 25% of Tesla's shares (currently his ownership is approximately 13%). To receive the full bonus, Musk must achieve multiple goals within 10 years, including expanding Tesla's developing robotaxi manufacturing business and increasing the company's market value to at least $8.5 trillion.
At the same time, the board also set a condition: if Musk does not meet these goals, he will not receive any compensation.
Tesla's board chairman, Robyn Denholm, had previously warned shareholders that if they did not approve this compensation plan for Musk, he might leave the company.
Before the shareholder meeting, it was already reported that some large shareholders of Tesla opposed paying such a huge amount of compensation to Musk. For example, the Norwegian Sovereign Wealth Fund, which holds 1.2% of Tesla's shares, rejected the proposal.
Other entities opposing this compensation plan include the California Public Employees' Retirement System (CalPERS) - according to Bloomberg, this retirement fund holds about 5 million shares of Tesla stock; the American Federation of Teachers - the second-largest teachers' union in the United States; the New York State Pension Fund - holding more than 35 million shares of Tesla stock, valued at approximately $1.7 billion.
Tesla's board previously stated that this record-breaking compensation is necessary to ensure that Musk can maintain focus and have sufficient motivation. On the other hand, those opposing the bonus plan argue that as Tesla's largest shareholder, Musk already has enough motivation; additionally, high bonuses may dilute the company's equity and pose risks to company management.
Musk himself has repeatedly expressed his desire to hold more Tesla stock, which would ensure his sufficient control over the company. During the third-quarter earnings call in 2025, Musk mentioned this issue again. This entrepreneur pointed out that Tesla's preparation for large-scale robot production and the expansion of its autonomous taxi network in the United States require his participation. He also added that he hopes to ensure that he will not lose control of Tesla due to insufficient shareholding at some point in the future.
In August of this year, Tesla had already issued 96 million shares to Musk, valued at approximately $29 billion. These shares were given as part of the Company’s 2019 Equity Incentive Plan. The condition for Musk to receive this bonus was that he continue to serve as the company's CEO or as the Executive Director responsible for product development and operational affairs before 2027.
Original: https://www.toutiao.com/article/7569793749938373170/
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