Will they or won't they? That was main question going into Tesla’s annual shareholder meeting on November 6 that was centered around a shareholder vote on a new compensation package for long-time CEO Elon Musk, a package potentially worth an unprecedented $1 trillion. The answer was a resounding yes. Despite some vocal opposition, the proposal passed with over 75 percent approval, Tesla said.

The new pay package, unveiled by Tesla’s board of directors in September, grants Musk up to 424 million additional shares to take his stake in the company to around 25 percent. For Musk to earn the full payout, though, he has to help Tesla reach several highly ambitious, borderline impossible goals. For each of the 12 equally sized tranches of stock grants, the board has set a market capitalization milestone, which must be paired with the achievement of one of 12 operational milestones, which include certain EBITDA goals as well as delivery targets. Tesla must pass all of these milestones, while growing to a market capitalization of $8.5 trillion for the proposed package to reach the widely reported value of $1 trillion – a scenario that seem highly unlikely from today’s point of view.

[...]

🔗 statista.com