Summary
Tesla shareholders approved a pay package for Elon Musk that could earn him up to $1 trillion over the next decade, provided he meets certain company growth targets. Musk's compensation depends on Tesla reaching an $8.5 trillion valuation and achieving other business milestones. This proposal received mixed reactions from different investors and funds.
Key Facts
- Tesla shareholders approved a potential $1 trillion pay package for Elon Musk at the annual meeting in Austin, Texas.
- Musk will earn the payout if Tesla reaches an $8.5 trillion valuation and other targets like delivering 20 million vehicles.
- Musk has a voting stake of about 15% in Tesla and is the largest shareholder.
- Morgan Stanley's Counterpoint Global fund and Florida's public pension fund supported the package.
- Norges Bank Investment Management and other groups voted against the package, citing concerns about its size and risks.
- The proposal follows a past legal dispute concerning Musk's 2018 compensation plan.
- Earlier this year, Tesla investors asked Musk to commit to working 40 hours a week due to concerns about share value.
- Tesla's brand ranking in a public perception poll fell from 8th to 95th, and its vehicle sales declined 49% in April compared to last year.
