Tesla Shareholders Approve Elon Musk's Record Pay Package
At Tesla's annual shareholder meeting, stockholders approved an extraordinary compensation plan for Elon Musk with 75% support, as announced on November 6, 2025.
Details of the Pay Package
The compensation is stock-based and contingent on ambitious company goals rather than a salary. Musk could unlock shares valued near one trillion dollars if Tesla meets specific targets within the next decade.
- Required market capitalization increase: from $1.5 trillion to over $8.5 trillion.
- No direct salary will be paid to Musk under this plan.
Comparison and Context
For perspective, Nvidia, currently the most valuable company worldwide thanks to the AI surge, is valued at $4.83 trillion. Its CEO earns $50 million annually and holds 3.5% of Nvidia's stock.
Musk's Current Wealth
Elon Musk's net worth stands around $460 billion, largely due to Tesla's stock, trading at approximately $465 per share—over 400 times its initial public offering price in 2010.
Previous Pay Package Controversy
A former compensation plan worth $55.8 billion is involved in a legal dispute. The court found the board's relationship with Musk too close during its approval process.
"Musk would earn no salary, but would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade."
"The board was too cozy with Musk in designing it."
Author's summary: Tesla has approved a staggering stock-based pay package for Musk, potentially granting him nearly $1 trillion if ambitious growth targets are achieved over ten years.