Tesla shareholders have approved the largest reward package in corporate history for CEO Elon Musk. This was reported by Zamin.uz.
The total value of this reward could reach approximately 1 trillion dollars. The decision, approved with over 75 percent of the vote at the shareholders' annual meeting, ties the reward to the company's long-term goals.
According to this plan, Elon Musk will not receive a guaranteed salary or cash bonuses. His reward will depend solely on the growth of Tesla's market value and financial performance.
To earn the full reward, the company’s market capitalization must reach 8.5 trillion dollars. Additionally, one of the main objectives is to expand the production of robotaxis.
If the set goals are not achieved, Musk will forfeit the reward. Implementing the plan could increase Musk’s stake in the company from the current 13 percent to 25 percent.
Elon Musk had previously expressed his intention to increase his shareholding to maintain full control over the company’s strategic development. Tesla’s board of directors considered this reward necessary to ensure Musk’s focus and motivation toward the company’s long-term objectives.
However, the decision also faced criticism. Some major institutional investors emphasized that Musk is already a significant shareholder and sufficiently motivated.
They pointed to concerns about shareholder dilution and governance risks. This decision indicates investor confidence in Musk’s strategy to transform Tesla from an electric vehicle manufacturer into a technological giant in artificial intelligence and robotics.
It is worth noting that the 56 billion dollar reward approved for Musk in 2018 was also one of the largest packages in history and at that time led to legal proceedings.
