Tesla shareholders approved a salary package of about $1 trillion for CEO Elon Musk on the condition that he achieves performance goals.
The annual shareholder meeting of electric car giant Tesla was held in Austin, Texas, USA. At the meeting, a vote was conducted for various proposals, including the “2025 CEO Performance Award”.
More than 75% of shareholders voted in favor of the proposal to pay nearly $1 trillion to CEO Elon Musk.
He needs to meet the goals
Tesla's board of directors sent a letter to shareholders in September offering a payout that would be made if Musk delivered “extraordinary” financial returns and remained in a leadership role at Tesla in coming years.
In the letter, which addresses the goals that Elon Musk must meet to receive full payment, it is stated that these goals include issues such as expanding Tesla's newly started robotaxi business and increasing the company's market value to $7.5 trillion. The letter stated that there were other conditions, such as Musk staying at the company for 7.5 to 10 years to receive an overall achievement award.
If Tesla's market value rises to $8.5 trillion, Musk is expected to be given about 12% of the company's shares. It is stated that the value of the payments to be made will be around $1 trillion.
THE RICHEST IN THE WORLD
Elon Musk, the boss of Tesla and SpaceX, and the richest person in the world, became the first person with a fortune of up to 500 billion USD. Following Musk on Forbes' list, Oracle founder Larry Ellison and Meta founder Mark Zuckerberg were also included. Musk, whose wealth exceeded $100 billion in August 2020, became the world's richest person for the first time in January 2021 with a fortune of approximately $190 billion.
