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Elon Musk’s $1 trillion pay package approved by Tesla shareholders. Here's what it means
Tesla shareholders have approved a pay package that could make Elon Musk the first trillionaire on the planet.
Elon Musk, the world's richest person, could become the first trillionaire on the planet soon, as Tesla shareholders approved a pay package in this regard on Thursday, November 6. The 54-year-old currently has a net worth of $491.4 billion, according to Forbes.
The pay package, as per Tesla, received support from over 75 per cent of shares, who voted in its favor during the annual shareholder meeting, CNN reported. It did not include the 15 per cent of the company, which is already owned by Musk.
"I super appreciate it," Musk said, while he was cheered by the crowd at the meeting.
Elon Musk bags $1 trillion pay package
Serving as the CEO of Tesla, Musk is not taking any salary. The recently approved pay package will serve as a stock grant providing him with as much as 423.7 million additional shares in the company over the next decade, as per CNN.
The Washington Post highlights that the pay package is a "vote of confidence from shareholders," who are hoping that he could take the company to new heights. Overall, the pay package will be awarded in 12 tranches, requiring him to achieve certain operational goals, which include growing Tesla's valuation in $500 billion increments and delivering the company's "20 millionth vehicle."
To qualify for the full potential payout, the world's richest person must work towards reaching the $8.5 trillion market cap for the company. To achieve this milestone, the company's shares are required to increase by 466 per cent from today’s stock price, CNN reported.
Nvidia, the most valuable company across the globe, reached a $5 trillion market cap last week.
The Washington Post reported that Musk gets to unlock an additional 1 per cent of the company's shares for every $500 billion that gets added to its valuation, besides other operational goals.
Also read: Musk vs Bezos payouts: Tesla CEO to get $1 trillion; here's how much Amazon boss gets
Why this matters
If the Tesla shareholders had rejected the pay package on Thursday, this might have resulted in Musk's exit from the Tesla CEO office, as per CNN.
The company's board informed in a filing that he highlighted the possibility of leaving Tesla if he did not get the control, which this pay package granted him.
FAQs
What is Elon Musk's net worth?
As per Forbes, Musk currently has a net worth of $491.4 billion.
How much did Elon Musk buy X, formerly Twitter, for?
He bought the company in a $44 billion deal in 2022.
What other companies is Elon Musk associated with?
He has co-founded SpaceX and xAI, an artificial intelligence startup.
