Elon Musk gets $1tn pay deal approval from Tesla shareholders
The richest man in the world and Tesla boss, Elon Musk, has gotten the approval of a record-breaking pay package that could be worth nearly $1 trillion (£760bn) from shareholders.
The deal was approved by 75% of shareholders, prompting huge applause from the audience at the firm’s annual general meeting on Thursday.
Part of the deal is that Musk must drastically raise the electric car firm’s market value over 10 years, and meet other targets, in order to be rewarded with hundreds of millions of new shares worth almost one trillion dollars.
While the scale of the potential payout has drawn criticism, Tesla board argued that Musk might leave the company if it was not approved – and that it could not afford to lose him.
Musk who took to the stage in Austin, Texas following the announcement, stated: “What we’re about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.
“Other shareholder meetings are snoozefests but ours are bangers. Look at this. This is sick.”
Musk is expected to Deliver 20 million Tesla vehicles and one million robots, get 10 million subscriptions to Tesla’s Full Self-Driving feature and bring one million self-driving Robotaxi vehicles into commercial operation within the next decade.
Other targets include; earning up to $400bn in core profit and eventually lifting Tesla’s overall market value to $8.5tn, currently $1.4tn.
Though he is not to receive any salary under the agreed deal, meeting the above milestones, with the firm’s market value raised high enough, would see him awarded a stock grant of more than 400 million additional Tesla shares – worth around $1 trillion.
BBC and Horse’s Mouth News
