Tesla Shareholders OK Musk’s $1 Trillion Pay Package

As expected, Tesla announced at its general meeting in Austin, Texas, that shareholders approved CEO Elon Musk’s pay package, which could reach $1 trillion in overall compensation, Pras Subramanian reported for Yahoo Finance.

Musk had previously said he was uncomfortable leading Tesla without at least a 20% share of voting power, which the new package provides. (Photo: U.S. Air Force)

Tesla said Musk’s package passed with over 75% approval. “I’d like to give a heartfelt thanks to everyone who supported the shareholder votes,” Musk said at the meeting. “I super appreciate it.”

This year’s package — revealed in early September — would grant Musk 12 massive tranches of stock options tied to what the board described as “aggressive” performance targets.

Tesla stock rose 2% after the results of the vote were announced.

Tesla chair Robyn Denholm said the package was necessary to motivate Musk in his duties and keep him in place as CEO.

Musk, who did not found Tesla, has previously threatened to develop products such as AI and robotics outside of the company if he did not receive the level of control he desired — behavior that some corporate observers have described as a form of blackmail.

Before the approval of the new plan, Musk held a 13% stake in Tesla following various share sales over the past two years. He has claimed he has not been “paid” in years.

His 2018 pay package remains tied up in a Delaware lawsuit, in which shareholders argued they were not given enough information to properly evaluate the compensation.

A trial judge agreed, and the Delaware Supreme Court is currently weighing the merits of Tesla’s appeal.

Musk had previously said he was uncomfortable leading Tesla without at least a 20% share of voting power, which the new package provides.