Elon Musk wins Tesla pay vote that could make him a $1 trillion man

In a significant decision today, Tesla shareholders have approved a compensation plan for CEO Elon Musk that could potentially reward him with more than $1 trillion over the next decade, contingent upon meeting specific performance targets. The vote, which saw Musk secure over 75% approval during the shareholder meeting, outlines a structure that could grant him 423,743,904 shares, distributed in 12 installments of 35,311,992 shares each, provided Tesla meets various operational and market value objectives. The ambitious goals include delivering 20 million vehicles, securing 10 million Full Self-Driving subscriptions, introducing 1 million AI robots, deploying 1 million robotaxis, and achieving an adjusted EBITDA of $400 billion. Musk has previously indicated that his commitment to Tesla could wane if he does not receive a larger share of the company, emphasizing his desire for significant influence over the company's future projects, notably his vision of a 'robot army.' He stated, "It’s not like I’m going to go spend the money. It’s just, if we build this robot army, do I have at least a strong influence over that robot army?" The pay plan is tied to 12 market capitalization milestones, with the highest target set at $8.5 trillion. Should Musk achieve all stipulated goals, the estimated value of his compensation could surpass $1 trillion, increasing his ownership stake to 24.8% of Tesla, or 28.8% if the company successfully appeals a previous court ruling regarding his 2018 pay plan. Tesla's Chair, Robyn Denholm, has defended the necessity of substantial compensation packages to keep Musk motivated. However, some investors argue that a $1 trillion payout is excessive for a CEO who also manages other companies, including SpaceX, X (formerly Twitter), and xAI. New York Comptroller Thomas DiNapoli criticized the pay plan last week, asserting that Musk's existing holdings should serve as sufficient motivation for performance. He remarked, "The idea that another massive equity award will somehow refocus a man who is hopelessly distracted is both illogical and contrary to the evidence. This is not pay for performance; this is pay for unchecked power." Amid concerns about Musk's divided attention, major investors have reportedly questioned Tesla executives about his commitment to the company and whether a succession plan is in place. In response, a notable group of Tesla board members, including Denholm and co-founder JB Straubel, recently engaged with significant investors in New York to advocate for Musk's proposed pay structure.