Elon Musk is on track to potentially become the world’s first trillionaire following the approval by Tesla shareholders of a new compensation plan for the CEO. The approved plan could see Musk unlock $1 trillion worth of Tesla stock if the company meets specific targets over the next ten years.
For Musk to achieve trillionaire status, Tesla’s total stock value must increase from its current $1.5 trillion to over $8.5 trillion. The compensation package also stipulates that Musk will not receive a salary.
As part of the plan, Musk must deliver 20 million electric vehicles, secure 10 million active full self-driving subscriptions, introduce one million humanoid robots, and launch a commercial service with one million Tesla taxis by 2035 to earn an additional 12% of the company’s stocks. Even if Musk falls short of these ambitious goals, he could still receive significant compensation, including $50 billion in additional Tesla shares for meeting certain operational targets.
With a current net worth of $493 billion, Musk is already the wealthiest individual globally, according to Forbes magazine. He has emphasized that his focus is not solely on financial gain but on increasing his Tesla stake to nearly 30% to maintain control of the company, particularly in light of Tesla’s future plans involving humanoid robots.
While many investors support the compensation package, critics, such as Calpers and Norway’s sovereign wealth fund, have raised concerns about the excessive nature of the pay. They argue that the board overseeing the package, which includes Musk’s brother, lacks sufficient independence. This criticism echoes a previous Delaware court ruling that criticized the approval process for a past Musk pay package due to concerns about Musk’s close relationships with board members.