Tesla shareholders today voted to approve a compensation plan that would pay Elon Musk more than $1 trillion over the next decade if he hits all of the plan’s goals. Musk won over 75 percent of the vote, according to the announcement at today’s shareholder meeting.
The pay plan would give Musk 423,743,904 shares, awarded in 12 tranches of 35,311,992 shares each if Tesla achieves various operational goals and market value milestones. Goals include delivering 20 million vehicles, obtaining 10 million Full Self-Driving subscriptions, delivering 1 million “AI robots,” putting 1 million robotaxis in operation, and achieving a $400 billion adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).
Musk has threatened to leave if he doesn’t get a larger share of Tesla. He told investors last month, “It’s not like I’m going to go spend the money. It’s just, if we build this robot army, do I have at least a strong influence over that robot army? Not control, but a strong influence. That’s what it comes down to in a nutshell. I don’t feel comfortable building that robot army if I don’t have at least a strong influence.”
It’s interesting to see how shareholders have supported Elon Musk’s compensation plan despite the criticisms. This decision highlights the confidence they have in his leadership and vision for Tesla. It’s certainly a significant moment for the company.
It’s definitely intriguing! Shareholders seem to recognize Musk’s unique vision and the long-term potential of Tesla, even amidst the criticism. It raises questions about how they weigh immediate concerns against future growth prospects.