Tesla shareholders have approved CEO Elon Musk’s compensation plan, valued at up to $1 trillion, in what marks the largest corporate pay package in history. The proposal received more than 75% support at Tesla’s annual meeting at its Texas factory, where Musk appeared on stage alongside the company’s dancing robots, according to Reuters.
The board argued the plan was crucial to retaining Musk and driving Tesla’s long-term growth, despite criticism from some investors who called it excessive. Musk’s compensation structure is based on a series of ambitious performance milestones, including targets such as Tesla producing 20 million vehicles, deploying 1 million robotaxis, selling 1 million humanoid robots and achieving a market value of up to $8.5 trillion. For each milestone reached, Musk would receive an additional stock award, potentially allowing him to accumulate up to 12% of the company if all targets are met.
Musk, already the world’s richest person, said the approval signaled confidence in Tesla’s expansion into artificial intelligence and robotics. He also reiterated plans to start production of the Cybercab robotaxi and unveil a new Roadster, while suggesting Tesla may build its own AI chip factory in collaboration with Intel.
Shareholders also reelected three board members, approved annual board elections and backed Tesla’s investment in Musk’s AI startup.
Although some large investors, such as Norway’s sovereign wealth fund and proxy firms Glass Lewis and ISS, opposed the package, Tesla’s move from Delaware to Texas allowed Musk to vote his roughly 15% stake, helping secure its approval.
The outcome reassures shareholders that Musk will remain focused on Tesla, raising hopes they will benefit if the company achieves its ambitious goals.
