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Elon Musk salary update: How much will Tesla CEO make after massive pay package vote?
Tesla shareholders handed Elon Musk a major salary boost, approving a record-breaking compensation package, marking the largest corporate payout in history
Tesla shareholders handed Elon Musk a major salary boost on Thursday, approving a record-breaking compensation package, marking the largest corporate payout in history. More than 75% of shares voted in favor of the proposal, which could make Musk the first trillionaire ever. He is already the richest person in the world.
The new plan, introduced by Tesla’s board last September, grants Musk over 423 million additional shares, boosting his ownership stake from 15% to roughly 25%. But the payout doesn’t come without conditions.
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To unlock the full compensation, Musk must steer Tesla to unprecedented heights. The benchmarks include pushing the company’s market value from $1.5 trillion to $8.5 trillion within a decade, launching 1 million robotaxis, selling 12 million vehicles, adding 10 million Full Self-Driving subscriptions, and deploying 1 million humanoid robots.
Tesla argued that failing to pass the plan risked losing Musk’s focus to his other ventures, from SpaceX to his AI and robotics ambitions.
Elon Musk currently doesn't take any salary. But the shares could be worth about $1 trillion, assuming the company reaches the $8.5 trillion market cap.
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Still, the decision was far from unanimous. Major institutional investors, including Norges Bank Investment Management (which oversees Norway’s sovereign wealth fund), and public pension groups like the American Federation of Teachers and New York City retirement systems, voted against the plan. Influential proxy advisers Glass Lewis and ISS also recommended rejecting it, citing excessive scale and governance concerns.
Musk’s previous $50 billion pay package was struck down by a Delaware court last year after a judge ruled that Tesla’s board lacked independence from its CEO. Although shareholders had approved that earlier deal twice, the court’s decision held firm, prompting Musk to engineer Tesla’s legal relocation from Delaware to Texas, a move shareholders also approved alongside the new compensation plan.
Musk thanked the shareholders and the Tesla board. “I super appreciate it,” he said.
Tesla is facing a period of uncertainty. Musk’s growing political ties, particularly his support for Donald Trump and his role in the Department of Government Efficiency, which oversaw sweeping federal job cuts and aid rollbacks, have sparked backlash and nationwide protests, hurting Tesla’s brand and slashing sales.
The final shareholder vote tally is expected to be detailed in a forthcoming SEC filing.
