Tesla Shareholders Approve Record $56 Billion Pay Package for CEO Elon Musk

Tesla shareholders have overwhelmingly approved a landmark $56 billion compensation package for CEO Elon Musk, a move that could significantly reshape executive pay standards in Silicon Valley and beyond. With over 75% of voting shareholders backing the plan, Musk is set to receive stock options structured across 12 tranches, contingent on Tesla achieving ambitious operational and financial milestones. These targets include reaching market valuations between $2 trillion and $8.5 trillion, delivering 20 million vehicles, deploying 1 million commercial robotaxis, and producing 1 million humanoid robots (Optimus), alongside achieving substantial operating profits. This performance-based, decade-long structure contrasts sharply with the annual or fixed schedules typical for other tech CEOs, such as Satya Nadella of Microsoft, Tim Cook of Apple, and Sundar Pichai of Google (Alphabet). For comparison, Nadella's compensation was $96.5 million in fiscal year 2025, Cook's was $74.6 million in 2024, and Pichai received a large triennial grant of $226 million in 2022. Mark Zuckerberg of Meta has a nominal $1 salary but receives significant benefits from ownership. Tesla's board stated the package aligns Musk's interests with shareholders over the long term and ensures he has sufficient voting control for strategic decisions, particularly as Tesla focuses on becoming an AI and robotics powerhouse. Despite Tesla dropping public guidance for 20 million vehicles by 2030, this target remains a metric for Musk's compensation.

Impact: This news has a moderate impact on global markets and investor sentiment, but a direct impact on the Indian stock market is limited unless it triggers broader trends in tech valuations or corporate governance. Rating: 5/10