$1,000,000,000,000 - That’s how much Elon Musk secured in a record Tesla pay package

Tesla CEO Elon Musk secured a record $1 trillion ($1,000,000,000,000) pay package on Thursday, 6 November, after shareholders overwhelmingly approved the proposal at Tesla's annual meeting in Austin, Texas. The vote result, revealed at the company's Austin factory, marks the largest payout ever granted to a corporate leader, according to AFP.

The pay package, which was designed to secure Elon Musk’s ongoing commitment to Tesla as the company advances its work in artificial intelligence and robotics, received over 75% support from shareholders, according to a Tesla official at the company’s annual meeting.

The compensation plan also focuses on keeping Musk at Tesla for a minimum of seven and a half years. It would increase his ownership stake from roughly 12% when the plan was announced in September to possibly more than 25%.

Musk said following the announcement, “I'd like to just give a heartfelt thanks to everyone who supported the shareholder votes. I super-appreciate it.”

Musk has long touted Tesla’s growth potential as virtually limitless. In July, he said that the company “will be the most valuable company in the world by far” if it achieves its goals in autonomous driving and AI.

However, he had also at the time suggested that he might step away from Tesla or reduce his involvement unless his ownership stake increases enough to secure the level of control he wants over the company’s direction.

Tesla Chair Robin Denholm urged shareholders to support the proposal, emphasising that retaining Musk is crucial to the company’s future, cautioning that the stock could drop significantly if he were to leave.

The board has dismissed criticism that the billionaire’s association with divisive political figures has hurt sales.

Tesla shareholders have historically backed Musk in votes concerning his compensation, including a 2018 package worth approximately $55.8 billion that a Delaware court has reportedly halted due to shareholder lawsuits.

After the most recent Delaware ruling, Denholm and Tesla’s board revisited the issue, first approving an “interim” compensation package valued at about $29 billion in August, and then introducing a larger plan in September.

Activist group Tesla Takedown protests

However, the activist group Tesla Takedown condemned the outcome, pointing to the company’s recent decline in vehicle sales.

The group, which voiced opposition to the plan on Wednesday in downtown Austin, said, “Elon Musk just got one trillion dollars for failure. Sales are down, safety risks are up, and his politics are driving customers away. This isn't leadership -- it's the world's most expensive participation trophy.”

Meanwhile, Elon Musk, whose net worth exceeds $500 billion, remains the world’s richest individual, according to Forbes’ real-time billionaire rankings. To earn the full compensation package, he must achieve 12 milestones tied to Tesla’s market capitalisation. The first portion becomes available once Tesla’s valuation reaches $2 trillion, up from its current $1.5 trillion. The report added that the plan also includes several performance targets related to operating profit and product output, including the goal of delivering 20 million Tesla vehicles.

(With inputs from AFP)