Musk’s $1 Trillion Pay Package Likely to Be Approved by Shareholders

According to Reuters, despite the staggering amount, Tesla's 10-year, $1 trillion compensation plan to retain CEO Elon Musk is still expected to be approved by shareholders at the company's annual meeting in November this year.

Model Y; Image Source: Tesla

Investors and executive compensation analysts said that the plan was designed to retain Musk, address market concerns about the company's technological prospects, and provide sufficient justification for large company shareholders to support this massive proposal.

Earlier on September 5, Tesla's board of directors approved what it called "an ambitious incentive plan tailored for a CEO with exceptional entrepreneurial spirit, ambition, and uniqueness." The plan sets high revenue and valuation targets—if Musk achieves these goals, he will receive millions of shares in stock rewards over the next decade.

The plan immediately grants Musk 96 million restricted shares.9 5 The calculation of intraday trading prices.These stocks, worth more than $31 billion, will gradually vest over the next two years, and Musk will also gain greater control over Tesla. Executive compensation research firm Equilar estimates that Musk’s total compensation package for 2025 will exceed $113 billion.