elon musk: Elon Musk’s historic $1 trillion pay package: Tesla CEO’s net worth to exceed GDP of seven countries? Check his fortune
This eye-popping compensation could make Elon Musk the world’s first trillionaire, but first he’ll need to hit a series of performance targets spanning the next decade. According to Forbes, the 54-year-old man has already become the richest person in the world with a fortune of $ 490.1 billion.
Tesla’s board of directors drafted the historic pay plan after a Delaware judge rejected a $56 billion compensation plan for Musk. The judge ruled that the previous package, approved in 2018, was excessive and rife with conflicts of interest.
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Elon Musk’s net worth after $1 trillion salary package
If Musk meets all the goals in the plan, which includes increasing Tesla’s market value to $8.5 trillion, his total stake in the automaker would be worth about $2.4 trillion, according to the Bloomberg Billionaires Index. That’s more than five times his current net worth (about $460 billion). His net worth will exceed the current gross domestic product of all but seven countries.
The stock will be given to Musk in 12 tranches. He will receive his first share of stock if Tesla reaches a $2 trillion valuation and delivers 20 million vehicles. Tesla will be given another slice if it reaches a market value of $3 trillion and delivers 1 million “Optimus” humanoid robots. If Tesla overcomes all obstacles, its market value will increase to $ 8.5 trillion and Musk will own approximately a quarter of the company’s shares.
Even if Tesla only hits the first two benchmarks, Musk himself will make $26 billion; That’s more than the combined lifetime salaries of Meta’s Mark Zuckerberg, Apple’s Tim Cook and Nvidia’s Jensen Huang, according to a Reuters analysis. ALSO READ: Amid the growing mystery of comet 3I/ATLAS, why was Kim Kardashian invited to join the alien research team for the interstellar object?
Under the approved plan, Tesla must meet several market capitalization-related milestones to receive the full package. Musk will need to meet goals to significantly increase Tesla’s market value, revive its flagging auto business, and launch its fledgling robotaxi and Optimus robotics efforts.
The first part will be available once Tesla reaches a market cap of $2 trillion. The package also includes targets tied to operating profit and product launches, such as delivering 20 million Tesla vehicles. The plan is structured to keep Musk at Tesla for at least seven and a half years.
Elon Musk reacted to the payment package
Tesla shareholders gave the world’s richest person the largest corporate payout in history, putting Elon Musk on track to become the world’s first trillionaire. “This isn’t just a new page for Tesla, it’s a new book,” Musk said, wearing a black Tesla jacket as he walked on stage in front of a cheering crowd at the shareholders’ meeting. “And this new book greatly increases vehicle production and Optimus production at a rate never seen before in human history.”
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The new pay package has been criticized by Elon Musk’s longtime opponents, including New York State Comptroller Thomas DiNapoli, who called the package “pay for unchecked power, not for performance.” Vermont Senator Bernie Sanders also criticized the plan, calling it “completely ridiculous.”
“People can’t afford rent, healthcare, or groceries, and they can’t retire with dignity,” Sanders told reporters. “Yet, we are talking about a man who already owns more wealth than the bottom 52% of American households getting even richer.”
(With input from Bloomberg)
