Tesla shareholders have approved an extensive pay package for CEO Elon Musk, potentially valued at nearly $1 trillion (£760 billion). This deal, which was recommended by the company’s board, received approval during the firm’s annual general meeting held in Austin, Texas, with 75% of voting shareholders in favor.
The agreement stipulates that Musk, currently the world’s richest person, must significantly enhance Tesla’s market value over several years to qualify for the compensation, which includes the issuance of hundreds of millions of new shares. Specifically, Musk is tasked with raising Tesla’s market valuation from approximately $1.4 trillion to $8.5 trillion and deploying a million self-driving “Robotaxi” vehicles into commercial service.
The board emphasized the importance of the deal, suggesting that Musk’s departure could pose a risk to the company’s future. Despite some controversy surrounding the scale of the compensation package, the shareholders’ approval was met with enthusiasm during the meeting.
Musk expressed a positive outlook regarding the future of Tesla, referring to the initiative as a “whole new book” for the company. He noted the lively atmosphere of the meeting compared to typical shareholder gatherings, implying a distinctive engagement among Tesla’s stakeholders.
As the company moves forward with this ambitious plan, questions remain about the feasibility of the outlined milestones and the broader implications for Tesla’s operations and market position.
Source: https://www.bbc.com/news/articles/cwyk6kvyxvzo?at_medium=RSS&at_campaign=rss