(NewsNation) — Tesla shareholders on Thursday awarded a massive pay package for CEO Elon Musk that could make the divisive tech titan and former White House adviser the world’s first trillionaire.
More than 75% of shareholders who gathered at the EV maker’s Austin, Texas, headquarters approved a compensation package granting Musk — already the world’s richest man, with an estimated fortune of $500 billion — stock worth $1 trillion for hitting performance benchmarks over the next decade.
The pay deal includes 12 potential “tranches” of shares for Musk and increased voting power as his ownership in the company jumps from about 13% to 25%, CNBC reported. The initial tranche of stock is released if Tesla’s market capitalization grows to $2 trillion from the current market cap of $1.54 trillion.
“Fantastic group of shareholders,” Musk said after the decision. He added: “Hang on to your Tesla stock.”
The compensation package was seen as positive for Tesla’s stock. Its valuation hangs on Musk’s goal to vehicles drive themselves, among other high-tech enhancements. Shares closed at $445.91 Thursday.
Musk’s escalating wealth comes as residents in New York City, the financial capital of the world, have elected Zohran Mamdani, a self-described democratic socialist who has railed against the billionaire class. His meteoric political rise has been credited to Mamdani’s proposals to make the Big Apple more affordable for struggling middle-class residents.
The Associated Press contributed to this report.
Go To Source | Author: Michael Ramsey
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