Tesla shareholders have approved a substantial compensation package for CEO Elon Musk, potentially making him the world's first trillionaire. The deal, dependent on performance benchmarks over 10 years, aims to keep Musk focused on the company, particularly on developing robots and robotaxis. Despite some shareholder concerns about the size and risk, the package passed with over 75% approval.
The money will be awarded in a series of payments over 10 years if Tesla meets a series of performance benchmarks.Over 75% of shareholders voted in favor of the pay package, said Brandon Ehrhart, the company’s general counsel, as Tesla shareholders gathered in person and virtually for their annual meeting.
. The compensation agreement could help to make him the world’s first member of the “Four Comma Club” with $1 trillion or more in riches.and his work in the Department of Government Efficiency in the Trump administration. In the first half of the year, Tesla suffered from Now, Musk is trying to turn around the company’s fortunes by focusing on developing robots that could one day work as household servants and by deploying robotaxis that could potentially drive without people in control. Neither is a reality yet: Tesla isn’t taking orders for droids, and its robotaxi prototypes still have— has been vocal on his social media app X in favor of the pay package, arguing that he gets nothing unless he makes the company more valuable., Tesla’s investor relations department said the pay package was “designed to keep Elon’s time, energy and considerable talents focused on Tesla for years to come and create jaw-dropping value for our shareholders.”Musk would need to remain Tesla CEO for 7½ years in order to vest in any shares from the new pay package, according to“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk- consistent with our views on executive compensation,” the fund’s manager, Norges Bank Investment Management, said in a statement. Musk has said that the pay package is more about him maintaining control over Tesla and its products than about riches. “If I go ahead and build this enormous robot army, can I just be ousted at some point in the future? That’s my biggest concern,” he said last month in a “I don’t feel comfortable building that robot army if I don’t have at least a strong influence,” he said. Musk is Tesla’s largest shareholder, and because the pay package involves the granting of further shares, he could consolidate influence. The package would give him sharesThe milestones Tesla would have to meet are: 20 million Tesla vehicles delivered; 10 million active subscriptions for the add-on driver-assistance service known as Full Self-Driving; 1 million bots delivered; 1 million robotaxis in commercial operation; and eight separate milestones for profitability. For Musk to get the full 12% of the company, the agreement also requires him to “develop a framework” for the eventual succession of a new Tesla CEO, but it does not set out any timeline for Musk, 54, leaving the CEO role. The new shares for Musk would be on top of his current shares, which give him an 18% voting stake in Tesla. Those shares, though, include his reward from a 2018 pay package that is still in dispute in a lawsuit pending before the Tesla said that Musk and his brother, fellow board member Kimbal Musk, recused themselves from the board vote to put the pay package in front of shareholders. Elon Musk's time working in the Trump administration is over. On Wednesday, May 28, the Tesla CEO announced on X that he is departing his position after his "scheduled time" ends.
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