Tesla shareholders voted Thursday to approve CEO Elon Musk’s unprecedented $1 trillion compensation plan — the largest executive pay package in history.
According to FOX Business, at the company’s annual meeting in Austin, Texas, roughly 75% of shareholders voted in favor of the proposal, which would grant Musk up to 12% of Tesla’s stock if the company reaches a market capitalization of $8.5 trillion and other performance goals within ten years.
Tesla’s current valuation stands at about $1.45 trillion, and Musk already holds about 13% of outstanding shares.
The new plan replaces Musk’s controversial $56 billion package from 2018, which was struck down by a Delaware judge earlier this year and remains under litigation.
“I’d like to just give a heartfelt thanks to everyone who supported the shareholder votes,” Musk said. He also thanked Tesla’s board for its “immense support,” joking that while most shareholder meetings are dull, Tesla’s “are bangers.”
Board Chair Robyn Denholm had urged investors to approve the plan, warning they risk losing Musk’s leadership if it failed.
“Do you want to retain Elon as Tesla’s CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?” Denholm wrote in a letter to shareholders. “If we fail to foster an environment that motivates Elon… we run the risk that he gives up his executive position, and Tesla may lose his time, talent and vision.”
Musk previously told investors he wanted enough voting control “to give a strong influence, but not so much that I can’t be fired if I go insane.”
Not all shareholders backed the record package. Norway’s sovereign wealth fund, Tesla’s sixth-largest outside investor, voted against it, citing concerns about “the total size of the award, dilution, and lack of mitigation of key person risk.”
Proxy advisory firms Glass Lewis and ISS also urged investors to reject the plan.
Despite the pushback, Tesla shares have risen more than 17% so far this year.
