Tesla shareholders could soon give CEO Elon Musk, already the wealthiest person on the planet, the chance to become the world’s first trillionaire – or risk him walking away entirely.
Musk’s new pay package is the key measure that will be up for a vote at Tesla’s annual meeting Thursday afternoon. Shareholders have widely approved Musk’s pay packages in the past, but this year holds an added risk – the company warned in September that Musk “raised the possibility that he may pursue other interests” should it be denied.
The compensation would come in the form of a stock grant that would give Musk as much as 423.7 million additional shares of Tesla stock over the next 10 years. Those shares would be worth about $1 trillion, assuming the company reaches the $8.5 trillion market cap needed to have Musk qualify for the full potential payout.
In addition to increasing the Tesla’s market cap over this ten-year period, Tesla would also need to achieve a series of either operational or financial targets for him to get the full options.
For Tesla to reach $8.5 trillion in market value, it would need an increase of 466% from today’s stock price. That’s also about 70% higher than the world’s most valuable company, Nvidia, which hit a record $5 trillion market cap last week.
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