Tesla shareholders have approved a $1tn compensation plan for CEO Elon Musk, awarding what would be the largest corporate payout in history if he meets the required goals. The vote, announced at the annual shareholder event in Austin, Texas, saw more than 75% of investors in favour, prompting chants of 'Elon' in the room.
Musk briefly danced on stage alongside the company's Optimus robots, which he described as the future of both Tesla and humanity. He reiterated claims that the robots, not yet in mass production, could be used in healthcare and prisons, and suggested they would 'stop you from doing crime'.
The pay package, opposed by several high-profile investors, demonstrates continued faith in Musk's leadership as Tesla pivots towards robotics and artificial intelligence. Critics argue it concentrates power in an erratic leader and ignores challenges such as falling sales and safety risks.
If Musk delivers on the milestones, he could become the world's first trillionaire. The plan requires Tesla to reach $8.5tn in market capitalisation, deploy millions of autonomous vehicles and humanoid robots, and sustain earnings in the hundreds of billions over a decade. Musk would also need to develop a long-term succession plan.
The approval follows the invalidation of Musk's 2018 compensation plan by a Delaware court, after which Tesla moved its corporate home to Texas. Under Texas law, shareholders voted again to approve the package, which now leaves Musk with 25% ownership of Tesla's stock.
