Tesla shareholders just made history by greenlighting a jaw-dropping $1 trillion pay package for CEO Elon Musk.
Fox Business reported that in a bold move at Tesla's annual meeting in Austin, Texas, on Thursday, November 6, 2025, 75% of shareholders voted to approve what is now the largest executive compensation plan ever recorded.
This isn't just a paycheck; it's a bet on Tesla's future. Under the plan, proposed in September 2025, Musk could snag up to 12% of Tesla's stock—potentially worth $1 trillion—if the company hits a staggering market cap of $8.5 trillion and other key targets over the next decade. Right now, Tesla's valuation sits at a hefty but distant $1.45 trillion.
Musk's compensation saga has been a rollercoaster. Back in 2018, a $56 billion package was awarded, only to be struck down by a Delaware judge in January 2024, with legal battles still ongoing. Last year, shareholders tried to reinstate it with 77% approval, though its value had dipped to around $44 billion due to stock price swings.
Enter the new plan, and boy, did it stir the pot. Tesla board Chair Robyn Denholm pushed hard for approval, warning that without it, Musk might walk away to focus on his other ventures.
"Do you want to retain Elon as Tesla's CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?" Denholm asked shareholders. Well, 75% said yes, but one wonders if this is less about motivation and more about tying Musk to the mast of a ship he already steers with a 13% stake.
Not everyone was cheering, though. Norway's sovereign wealth fund, a major Tesla investor, voted against the plan, citing concerns over its sheer size and the risk of over-reliance on one man. Proxy advisory firms like Glass Lewis and ISS also urged a "no" vote, seeing this as a dilution of shareholder value.
Norges Bank Investment Management stated, "While we appreciate the significant value created under Mr. Musk's visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk." Fair point—when one person's paycheck could eclipse entire economies, maybe it's time to diversify the brain trust.
Still, Musk himself seemed unfazed by the naysayers. He’s already got a 13% slice of Tesla, and with shares up 17% this year, despite a recent dip to $425.80 (down 4.51% on the day of the report), his influence isn't exactly waning.
The man of the hour took a moment to bask in the win. "I'd like to just give a heartfelt thanks to everyone who supported the shareholder votes," Musk said. Gratitude is nice, but with a potential $1 trillion dangling, one might argue the thanks are mutual.
Denholm's warnings about losing Musk to other projects hit a nerve with many. Is Tesla so dependent on one individual that it must offer a king's ransom to keep him? It's a valid concern in a world where innovation shouldn't hinge on a single name.
Yet, there's no denying Musk's track record. Tesla's growth under his watch has been nothing short of electric, pun intended. Shareholders clearly believe that betting big on him could drive the company to that $8.5 trillion dream.
Critics might call this a reckless gamble, especially with legal clouds still hovering over the 2018 package. But supporters see it as a necessary incentive to keep Tesla charging ahead in a cutthroat industry. The progressive push for "equity" in pay often ignores the reality of rewarding results over optics.
