Shareholders agree to mega bonus Elon Musk

A boost for Elon Musk. Tesla shareholders have approved the compensation package for the CEO, which could reach $1 trillion. It was by no means a close call: no less than 75% of the voting shareholders supported the plan.

Musk will receive this amount in tranches. However, the bar is set extremely high. For example, the market capitalization must rise to $8.5 trillion in ten years (up from $1.4 trillion now). Additionally, 1 million robotaxis must be operating, and 1 million robots must be sold. There are several other requirements as well.

The plan was not without controversy. Proxy advisory firms ISS and Glass Lewis, along with several smaller pension funds, opposed it. This week, the Norwegian sovereign wealth fund Norges Bank Investment Management (with a 1.2% stake) also joined in opposition.

The approval of the compensation proposal came as a surprise to most IEX readers who participated in the poll on our website. Of the 210 readers who shared their opinion, no less than 62% expected the plan to be rejected.

Sources: iex.nl, tesla fans schweiz (picture)