Tesla shareholders approved Musk’s pay package, potentially making him a trillionaire.
Elon Musk is already the world’s richest man, but after his new Tesla pay plan was approved today, he could become the world’s first trillionaire over the next 5-10 years. The new plan would pay him up to $1 trillion in Tesla stock.
Tesla announced that more than 75% of shares voted in favor of the pay package during the company’s annual shareholder meeting. The vote didn’t include the 15% of the company that Musk already owns.
The crowd at the meeting broke into cheers and chants when the results were announced. Musk thanked the shareholders and the Tesla board soon after. “I super appreciate it,” he said.
Musk doesn’t take any salary, but the approved pay package comes in the form of a stock grant that would give him as much as 423.7 million additional Tesla shares over the next 10 years.
In order to get there, Tesla would have to double in size a couple of times. Here’s how the plan is structured.
The first tranche of stock gets paid out if Tesla hits a market capitalization of $2 trillion. Tesla’s current market cap is $1.54 trillion.
The next nine tranches would be awarded if Tesla’s value increases by increments of $500 billion, up to $6.5 trillion. Musk would earn the last two tranches if the market cap rises by increments of $1 trillion, meaning it would need to hit $8.
