Tesla shareholders on Thursday overwhelmingly endorsed a massive pay package for CEO Elon Musk that could reach $1 trillion.
The pay package—crafted to ensure Musk’s continued service to Tesla as the company pursues breakthrough technology on artificial intelligence and robotics—won more than 75% support from shareholders, a Tesla official said at the company’s annual meeting.
“I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes,” a euphoric Musk told the gathering. “I super-appreciate it.”
Cheers of “Elon” broke out after the vote result was announced at the gathering, which was held at the company’s factory in Austin.
The package aims to ensure Musk stays at Tesla for at least seven-and-a-half years. It would lift Musk’s holding in Tesla from about 12% when the package was introduced in September to potentially more than 25%.
Musk has described Tesla’s potential growth as nearly boundless, saying in July that it “will be the most valuable company in the world by far” if it delivers on envisioned advances on autonomous driving and AI.
But Musk himself has hinted he could leave Tesla or take a back seat if his ownership share is not raised enough to give him the influence over its future that he desires.
In urging shareholders to back the proposal, Tesla Chair Robin Denholm argued keeping Musk was essential to Tesla’s future, warning the company’s stock could dive if he exited.
He must hit 12 milestones related to market capitalization to receive the full pay package. The first tranche would be available when Tesla reaches $2 trillion in market value, up from its current $1.5 trillion.
The plan also involves a series of operating profit and product goals, such as the delivery of 20 million Tesla vehicles.
