Tesla approved a $1 trillion compensation package for CEO Elon Musk at its annual shareholders meeting on June 6, setting a record for the highest compensation ever awarded to a business leader.
According to Bloomberg, at the shareholders' meeting, more than 75% of the votes supported the unprecedented compensation package, bringing an end to weeks of lobbying efforts by Tesla's board of directors, Elon Musk, and prominent retail investors.
This compensation package paves the way for Elon Musk to become the world's richest man and the first-ever"$1 trillion billionaire," giving him the opportunity to increase his stake in Tesla to over 25% within the next decade. To receive the full reward, he must achieve several goals: significantly increase Tesla's market capitalization, revive the struggling automotive business, and make progress on the still-early-stage driverless taxi and robotics projects.
If Musk achieves all the goals in his plan, including increasing Tesla's market capitalization to $8.5 trillion (approximately NT$266 trillion), his total Tesla share value will reach approximately $2.4 trillion (approximately NT$75 trillion). The Bloomberg Billionaires Index shows his current net worth is approximately $460 billion.
As of 5:15 p.m. in after-hours trading in New York on the 6th, Tesla's stock price was little changed, paring gains that had earlier reached as high as 3.4%. Year-to-date, the stock has risen 14% as of the close of trading on the 5th, slightly less than the S&P 500's 16% gain.
The board took proactive steps to garner support, including meeting with large institutional investors. Tesla Chairman Robyn Denholm also made several media appearances, stating in an interview with Bloomberg News that the vote was crucial for Tesla's future because the company needed Musk's active involvement to achieve its goals.
Musk himself has also tried to garner support, stating in Tesla's most recent earnings call that he is not comfortable building an"army of robots" unless he owns a quarter of the company.
