Tesla Shareholders Vote on Musk's $1 Trillion Pay Package

Tesla shareholders are deciding whether to approve a compensation package for CEO Elon Musk that could be worth up to $1 trillion. This would become the largest corporate pay package in history.

Musk has warned that he may leave the company if the proposal does not receive enough support. According to him, the additional stock options are necessary to raise his control over Tesla from the current 16% to 25%, in order to protect the company from activist investor influences.

The outcome of the vote largely depends on major investors, including Vanguard (7.5%), BlackRock (4%), and State Street (3.4%). The Norwegian Government Pension Fund, which holds 1.1% of the shares, has already expressed its opposition, stating that the compensation is excessively large and overly reliant on a single individual.

Under the new plan, Musk will not receive any salary or bonus. His entire compensation is linked to the increase in Tesla’s market value to $8.5 trillion, an annual profit increase of up to $400 billion, and the success of sales from robotic and autonomous driving services. To receive all the shares, Musk is required to hold them for at least seven and a half years.