Tesla shareholders have cleared a gigantic stock-based compensation package for CEO Elon Musk which could potentially turn him into the worlds first trillionaire if the electric vehicle giant hits its long term growth benchmarks, as per CNN. At the annual shareholder meeting on Thursday, the voting outcome was overwhelmingly in favour with more than 75 per cent shareholders backing the plan excluding the 15 per cent stake Musk already owns. The hall reportedly burst into loud cheers and excited chants as the decision was declared.
Musk acknowledges support
After the approval, Musk said, "I super appreciate it" while thanking Tesla investors and the board for extending full confidence in him. Notably, Musk does not draw any salary like traditional CEOs and instead receives compensation entirely through stock options. The approved package will allow up to 423.7 million Tesla shares to be granted in the next 10 years which at peak valuation could translate into almost USD 1 trillion if Tesla hits a market cap of USD 8.5 trillion.
Biggest executive payout in corporate history
This target calls for Tesla stock to rally nearly 466 per cent from present levels and would place the automaker above Nvidia which is valued at almost USD 5 trillion right now. If Musk is able to unlock all 12 tranches of this stock based award, the value of earnings would work out to around USD 275 million per day, making this the biggest executive pay deal ever recorded.
Board cautions against rejection as company faces headwinds
It is to be noted here that Tesla directors had already warned investors that rejecting the proposal could push Musk away from the company as he had expressed concerns over continuing without more concrete assurance and control. However, the backdrop is challenging as Tesla sales and net profit numbers have sharply fallen in 2025, thanks to cooling EV appetite and declining US government incentives, CNN has reported.
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