"Musk will not be awarded $1 trillion right away, under the deal. Nor will he receive a salary. But he stands to make hundreds of billions of dollars and gain more control of Tesla if he helps the company achieve a number of milestones and boost its profits along the way. Some of those hurdles will be difficult to clear. Many, though, are simply watered down versions of promises Musk has made for years."
"More than 75% of shareholders who participated voted to approve the plan, in line with the amount of support Musk has received for past pay packages. As the result was announced, shareholders in the room at Tesla's Austin, Texas factory began chanting: "Elon! Elon!" Flanked by dancing Optimus robots, Musk said Thursday that "what we're about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book.""
"The pay package is broken into 12 tranches - covering operational, adjusted profit, and market capitalization goals - each one giving more shares to Musk if those goals are reached. For instance, Tesla, which today has a market capitalization of about $1.5 trillion, will need to steadily increase that valuation and hit $8.5 trillion in a decade."
Shareholders approved a performance-based compensation plan for Elon Musk that could award up to $1 trillion in Tesla shares if multiple milestones are met. More than 75% of participating shareholders voted in favor, and supporters chanted at the Austin factory meeting. The package contains 12 tranches tied to operational, adjusted profit, and market-cap goals; achieving each tranche grants additional shares. Musk will not receive the full $1 trillion upfront nor a salary, but may earn hundreds of billions and increase control by meeting targets. Several goals are challenging, including lifting market capitalization from roughly $1.5 trillion to $8.5 trillion within ten years. Tesla campaigned heavily for approval, including interviews and television ads.
Read at TechCrunch
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