Elon Musk, the world’s richest man, is about to make history. Tesla shareholders have approved a $1 trillion pay package (approximately Rs 83 lakh crore). This is the largest pay package ever received by any corporate CEO. More than 75% of shareholders voted in favor of this plan at Tesla’s annual meeting.
Musk on the Path to Becoming the First Trillionaire
This historic decision has raised the possibility of Musk becoming the world’s first trillionaire. According to Forbes, 54-year-old Elon Musk has a net worth of $490.1 billion. If this new pay plan is implemented, his wealth could reach $2.4 trillion, exceeding the entire GDP of many countries.
A Big Package Comes With Big Responsibility
Musk won’t receive this package all at once. He will be granted stock options in 12 installments. The first installment will be awarded when Tesla’s market value reaches $2 trillion and the company sells 20 million vehicles. The next installment will be released when Tesla’s value reaches $3 trillion and the company delivers 1 million ‘Optimus’ robots. If Tesla meets all these targets, its value will reach $8.5 trillion, with Musk owning approximately 25% of the company.
The earnings of other billionaires will also pale.
According to a Reuters report, if Tesla achieves just the first two targets, Musk will pocket $26 billion. This amount is more than the combined earnings of Mark Zuckerberg of Metacritic, Tim Cook of Apple, and Jensen Huang of Nvidia.
Old package rejected, mega deal secured
Tesla’s new pay package comes after a Delaware court struck down Musk’s previous $56 billion pay plan, citing a “conflict of interest.” The court subsequently drafted a new, much larger pay package to ensure Musk’s continued involvement and further advance Tesla’s future.
Critics say payment for power, not performance
However, not everyone is pleased with the decision. New York State Controller Thomas DiNapoli called it “payment for unbridled power.” Meanwhile, US Senator Bernie Sanders said, “It’s absurd to pay such a large sum to one man when ordinary people are struggling to pay for rent, medicine, and food. He’s already richer than half the households in America.”
