Elon Musk record-breaking pay: Tesla shareholders approve a $1 Trillion compensation plan

With over 75% of votes in favor, the Tesla CEO secures the largest pay package in history. Twelve goals over ten years, combining market growth and technological revolution. If he meets them, Musk will earn an amount never before seen in the corporate world.

Elon Musk has made headlines once again—this time not with a rocket or an electric car, but with his paycheck. Tesla shareholders have approved, with more than 75% of the votes, a compensation plan that could be worth up to $1 trillion, the largest ever in a publicly traded company.

The new ten-year compensation package consists of twelve tranches of stock options that Musk will receive only if Tesla meets specific financial and operational milestones. No cash bonuses, no fixed salary: everything depends on the value he creates. The ultimate target is colossal—an $8.5 trillion market capitalization, more than eight times the current level.

To get there, Mr. Tesla will have to achieve goals that sound like something out of an Isaac Asimov novel: one million autonomous taxis on the roads and one million humanoid robots produced by Tesla. If he succeeds, Musk would end up controlling nearly 29% of the company, further strengthening his grip on the electric vehicle giant.

The decision did not come without controversy. Some of the largest institutional investors—including Norway’s sovereign wealth fund and the U.S. pension giant Calpers—had announced their opposition, calling the package excessive. But other major players such as Vanguard, BlackRock, and State Street, Tesla’s three largest shareholders, were decisive in pushing it through.

Board chair Robyn Denholm fought hard for a positive outcome, warning investors of the risk of losing Musk, who had threatened to leave Tesla if the proposal were rejected.

It’s not the first time the South African billionaire’s pay has drawn scrutiny: in 2023, a Delaware judge struck down a previous $56 billion package as excessive. Yet the “impossible” goals set back then? Musk not only met them—he surpassed them.

Now, Tesla’s future once again depends on his ability to turn the improbable into reality. And if there’s one person who thrives on impossible challenges, it’s Elon Musk.

Andrea Pelucchi