Elon Musk's Net Worth To Soar As Tesla Approves $1 Trillion Compensation Package With 5 Targets
- Tesla shareholders have announced $1 trillion compensation package for their CEO, Elon Musk
- The package comes with a condition that Tesla achieves its ambitious growth targets over the next decade
- The plan awards Musk over 423 million additional shares, potentially doubling his net worth if Tesla hits goals
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Tesla shareholders have approved a groundbreaking remuneration package for CEO Elon Musk, potentially worth nearly $1 trillion over the next decade.
The plan, proposed by Tesla’s board, is intended to retain Musk, who has been central to the company’s rapid growth, though it faced opposition and debate among some of Tesla’s largest investors in recent weeks.
Source: Getty Images
If the targets set for Elon Musk are fully realised, the package could nearly double Musk’s already substantial net worth.
It will also further strengthen his position as the world’s richest individual.
Key details of Elon Musk $1 trillion package
During the shareholders' meeting, over 75% of Tesla shareholders voted in favour of the remuneration plan.
A final vote tally is expected to be submitted to the US Securities and Exchange Commission in the coming days.
The plan awards Musk more than 423 million additional shares, which would increase his stake in Tesla to approximately 25%, contingent on the company meeting a series of ambitious targets over the next ten years.
These targets include raising Tesla’s market capitalisation from $1.5 trillion to $8.5 trillion, selling 12 million additional cars, securing 10 million autonomous driving subscriptions, operating 1 million Robotaxis, and selling 1 million Tesla Bots, among other operational and financial milestones.
5 major targets for Elon Musk
- Raise Tesla’s market capitalisation from $1.5 trillion to $8.5 trillion
- Sell 12 million additional cars
- Secure 10 million autonomous driving subscriptions
- Operate 1 million Robotaxis
- Sell 1 million Tesla Bots
Who are the people who support the huge pay for Elon Musk
The compensation package for Elon Musk was supported by both the Tesla board and several major institutional investors.
Tesla Chair Robyn Denholm emphasised in a letter to shareholders that Musk’s departure could result in a significant loss of company value.
She noted that Tesla’s long-term vision relies heavily on Musk’s leadership and that the company “may no longer be valued for what we aim to become” without him, Forbes reports.
Source: Getty Images
Also, several investment firms expressed strong support as well. Counterpoint Global, part of Morgan Stanley, cited Musk’s track record of driving “incredible fundamental success and shareholder returns” as a reason to back the plan.
The Florida State Board of Administration and Charles Schwab also publicly endorsed the package, highlighting alignment between management and shareholder interests, CNN reports.
The approval of Elon Musk's package marks a historic moment in corporate remuneration.
Nigerian billionaires net worth
Earlier, Legit.ng reported that Nigerian billionaires, both at home and in the diaspora, continue to rank among the richest people in the world.
Forbes reports confirm six Nigerian billionaires, led by Aliko Dangote, among the wealthiest people alive.
Dangote continues to lead the table as the richest Black man in the world and the wealthiest man in Africa.
Source: Legit.ng
