Tesla shareholders have approved an extraordinary compensation package for CEO Elon Musk, potentially valued at up to $1 trillion over the next decade. The deal grants Musk the opportunity to earn 423.7 million Tesla shares, awarded in 12 tranches based on performance milestones, including the delivery of 20 million electric vehicles, deployment of 1 million robotaxis, $400 billion in EBITDA, and an $8.5 trillion market capitalization.
Despite receiving more than 75% backing from shareholders, the plan has faced opposition from several institutional investors. Norway’s sovereign wealth fund, Tesla's largest pension-fund investor, has publicly rejected the deal, citing concerns over dilution, "key-person risk," and the independence of the board.
Musk has dismissed critics as “corporate terrorists,” calling proxy advisors like Institutional Shareholder Services and Glass Lewis “asinine” for opposing the deal. His supporters argue that the package locks Musk into Tesla for at least the next eight to ten years, aligning his long-term incentives with shareholders as the company ventures further into AI, robotics, and autonomous mobility.
At present, Musk is the world’s richest individual, with a net worth of $487.5 billion, according to Forbes. The compensation deal could increase his stake in Tesla from approximately 15% to 29%, although failure to meet the targets would significantly reduce the payout.
Bd-pratidin English/ Jisan
