Elon Musk is at the top of the list of the richest people in the world, and now he is going to create history by becoming even richer. Tesla shareholders on Thursday approved a billion-dollar pay package for Musk. More than 75 percent shareholders supported it in Thursday’s meeting. During the meeting, Musk said, “What we’re about to reach is not just a new chapter in Tesla’s future, but a whole new book.”
The path to earning 1 trillion dollars is clear
If Musk meets his company’s long-term performance goals, he could earn up to $1 trillion. This package is designed to keep Musk at Tesla for the long term. Unlike most CEOs, Musk doesn’t take a salary. All of his income comes from stock options. Under this new package, he could get 423.7 million Tesla shares over the next decade. If the company’s market value reaches $8.5 trillion in the meantime, Musk will be paid about $1 trillion.
Will Tesla overtake Nvidia?
According to the performance-based incentive structure developed by Tesla’s board, Musk will receive a stock package worth billions of dollars if the company achieves a target market value of $8.5 trillion. This will not only benefit the company, but will also significantly increase Musk’s net worth.
To achieve this goal, Tesla would have to increase its share price by 466% from the current level. If this happens, Tesla will overtake Nvidia to become the most valuable company in the world. Apart from this, if Musk gets all the 12 tranches of this package, his earning will be approximately US $ 275 million per day. This package is considered to be the largest package in corporate history.
