Tesla shareholders approve $1-trillion pay package for Elon Musk

Core Points - Tesla shareholders approved a $1-trillion compensation plan for CEO Elon Musk, aimed at keeping him focused on the company [1][2] - Over 75% of voters supported the pay plan, which ties Musk's earnings to specific performance milestones [2] - The plan includes ambitious targets such as achieving an $8.5-trillion company valuation and delivering 20 million vehicles [3] Compensation Plan Details - Musk will earn Tesla shares incrementally based on performance milestones, with potential earnings in the billions even if only a few targets are met [2] - The plan could eventually grant Musk a 25% stake in Tesla, increasing from his current 13% ownership [3] - Milestones include deploying 1 million robotaxis and achieving 10 million full self-driving subscriptions [3] Governance and Shareholder Concerns - Tesla's board chair urged shareholders to support the plan, suggesting Musk might resign if it was not approved [4] - Concerns have been raised about the board's independence, with claims that it is overly influenced by Musk [5] - A Delaware judge previously blocked a smaller pay proposal, citing flaws in the approval process and Musk's influence over shareholders [5][7]