Tesla shareholders have approved a $56 billion pay package for CEO Elon Musk, making it one of the largest executive compensation plans in history. The move comes as Tesla continues to make waves in the automotive industry, with its electric vehicles gaining popularity and its stock price soaring.
The pay package, which was originally proposed in 2018, is designed to incentivize Musk to meet certain performance goals over the next decade. If he is successful, Musk could potentially become one of the richest people in the world.
The package includes a series of 12 tranches, each tied to Tesla’s market value and revenue targets. Musk will receive stock options worth up to 1% of the company’s current market value if he meets all of the targets.
Critics of the pay package have raised concerns about its size and the potential for excessive compensation for Musk. However, supporters argue that it is necessary to incentivize Musk to continue leading Tesla to success.
Musk, who is already a billionaire, has said that he will not take a salary or cash bonus under the new compensation plan. Instead, he will only be compensated through the stock options.
Tesla’s shareholders ultimately voted in favor of the pay package, with over 73% of votes cast in favor. This is a strong show of support for Musk and his leadership of the company.
Tesla has been a controversial company in the past, with Musk often making headlines for his unconventional behavior and bold predictions. However, the company’s success in the electric vehicle market cannot be denied, and investors seem to have confidence in Musk’s ability to continue driving Tesla forward.
With the approval of this massive pay package, Musk now has even more incentive to push Tesla to new heights. Only time will tell if he will be able to meet the ambitious targets set out in the plan, but one thing is for sure – the future of Tesla is looking brighter than ever.