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Tesla Shareholders Greenlight $1 Trillion Pay Package for Elon Musk

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On Thursday, Tesla shareholders ratified a $1 trillion compensation plan for CEO Elon Musk, potentially granting the world’s wealthiest individual the largest corporate payout in history, contingent on meeting specified targets.

Despite opposition from several notable investors, the compensation framework underscores shareholders’ confidence in Musk’s ability to steer the automaker through an era increasingly influenced by robotics and artificial intelligence.

The results were announced during the company’s annual shareholder meeting in Austin, Texas, where over 75% of attendees voted in favor. Following the announcement, enthusiastic shouts of “Elon” filled the venue.

“Thank you, everyone,” Musk expressed after performing a brief dance alongside the company’s Optimus robot.

Musk emphasized that the Optimus robot, which is yet to achieve mass production, represents both Tesla’s future and humanity’s. He reiterated that it could become the “biggest product ever,” with applications ranging from healthcare to correctional facilities.

“Imagine having a free Optimus that follows you and prevents criminal behavior,” Musk remarked. “We can move away from jail systems. The possibilities are astonishing.”

He previously indicated that he sought a compensation package granting him greater control over the company and “stronger leverage over the robot army” under development.

Musk’s astronomical compensation is comparable to the GDP of entire nations, surpassing that of Ireland, Sweden, and Argentina, and outstrips federal allocations for major government programs.

Critics, including some shareholders, contended that concentrating such power in a single, unpredictable leader overlooks the obstacles facing the company.

“Elon Musk just earned $1 trillion despite setbacks. Sales are declining, safety issues are rising, and his political views may alienate customers. This isn’t true leadership; it’s the world’s priciest participation trophy,” stated the protest group Tesla Takedown.

Should Musk meet the high benchmarks of his salary package, he could become the world’s first trillionaire. This requires Tesla to boost its market capitalization to $8.5 trillion, eightfold its current worth. Additionally, he needs to roll out millions of self-driving cars and humanoid robots, while maintaining substantial revenue over the forthcoming decade.

The compensation goals, which are distributed across 12 tranches, outline a roadmap for Tesla to achieve this monumental market capitalization. If successful, Musk will be eligible to liquidate an additional 12% of his shares after committing to the company for a minimum of seven and a half years. He will also have to help devise a comprehensive succession plan for the firm he has directed for over two decades.


In addition to the shares guaranteed under the 2018 package, the new compensation plan will leave Musk with a 25% ownership stake in Tesla. As of November 5, Tesla’s stock was trading around $450 per share, close to its 52-week high.

Over the next decade, Musk is tasked with delivering 20 million Tesla electric vehicles, securing 10 million active fully self-driving subscriptions, manufacturing 1 million humanoid robots, and deploying 1 million robotaxis for commercial use.

Additionally, Musk must enhance the company’s underlying profits to $400 billion for four consecutive quarters. Tesla’s profit for the third quarter of 2025 stood at $4.2 billion, marking a 9% decline from the previous year.

As of November, Musk’s net worth reached $460 billion, making him the richest person globally. Bloomberg Billionaires Index.

Restoration of Canceled Packages

Shareholders also validated a compensation package for Musk after his 2018 plan was nullified by a Delaware court. The plan, valued at approximately $56 billion, faced challenges from a shareholder who ultimately prevailed. Delaware’s Court of Chancery has twice invalidated Musk’s pay structure.

Following the initial cancellation of his 2018 compensation plan, Musk relocated Tesla’s headquarters from Delaware to Texas. He stated that SpaceX and other corporate headquarters have similarly made the move. In 2024, shareholders once again endorsed the pay package under Texas law.

However, Delaware’s “court of equity” has ruled against one of the largest CEO compensations in modern times yet again. In light of this adverse ruling, Musk expressed dissatisfaction with the state and its activist judge, further fueling an exodus of corporations Delaware lawmakers are attempting to curb through legislation.

“He had a significant platform,” commented Lawrence Hammermesh, a professor emeritus at Widener University Delaware School of Law and a former corporate lawyer. “There seems to be more to this transition than just Musk stirring the pot, but it likely had an impact.”

In assessing whether Musk had excessive influence in securing his 2018 compensation package, Eric Talley, a Columbia Law School professor, noted that the judge found that other “superstar CEOs” like Meta’s Mark Zuckerberg and Amazon’s Jeff Bezos had not received comparable incentive-based contracts.

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Norwegian Wealth Fund Rejects Elon Musk’s $1 Trillion Compensation Package for Tesla

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Norway’s sovereign wealth fund has declared its intention to oppose Tesla’s proposed $1 trillion (£765 billion) compensation package for Chief Executive Elon Musk.

The largest national wealth fund stated that it acknowledges “the remarkable value created under Mr. Musk’s visionary leadership” but will vote against his performance-based award.

“In line with our stance on executive compensation, we are worried about the total remuneration, dilution, and the absence of risk mitigation for essential personnel.” “We remain eager to engage in constructive discussions with Tesla on this and other matters.”

The alert from Norges Bank, Tesla’s seventh-largest single shareholder with $17 billion in stock, arrived just two days prior to Tesla’s annual shareholder meeting.

On Thursday, shareholders are expected to vote on an extraordinary incentive proposal that could propel Elon Musk to become the world’s first trillionaire.

If Musk escalates Tesla’s valuation from approximately $1 trillion to $8.5 trillion over the next decade, he would be granted new shares, and his ownership stake would increase from nearly 16% to over 25%.

This would boost the wealth of the world’s richest man to over $2 trillion.

Tesla Chairman Robin Denholm emphasized that this vote is crucial to retaining Musk, 54, as the company’s CEO, stating in a letter to shareholders that the company might lose “significant value” should he depart.

Last year, the Norwegian Oil Fund opposed Musk’s $56 billion compensation plan, which was the largest in U.S. corporate history at the time. Although it was approved by shareholders in June, a Delaware court later rejected it a second time in December.

Nikolai Tangen, the chief executive of the Norwegian fund, had invited Musk and other CEOs to a dinner in Oslo last year, but Musk declined after the fund voted against the $56 billion compensation package.

Text exchanges between Tangen and Musk were disclosed in a Freedom of Information request by Norwegian business magazine DN. The newspaper reported that Musk texted Tangen in October last year: “It’s not often that I ask you for a favor and you say no. Then you shouldn’t ask me for a favor until I do something more than make up for it. A friend is a friend.”

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Shareholders are split on the proposed deal, with two significant shareholder advisory firms, Glass Lewis and ISS, both advising investors to reject the $1 trillion package.

Several major pension funds are also against the pay structure, including the American Federation of Teachers and the California Public Employees’ Retirement System, the largest public system in the nation.

Musk, being Tesla’s largest single shareholder, also has a vote on the proposal.

Last month, Tesla’s president stated on the social media platform X, which he acquired in 2022, “Tesla is worth more than all the other car companies combined. Which CEO would want to run Tesla? It wouldn’t be me.”

Tesla was approached for comment.

Source: www.theguardian.com

Tesla Presents Elon Musk with a Trillion-Dollar Compensation Package

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Elon Musk might become the first individual to exemplify a significant milestone as he targets ambitious goals set by Tesla, where he holds the largest shareholding, in a plan unveiled by the electric vehicle giant.

In the recent stock market update, Tesla detailed an incentive package that is unparalleled in corporate history, stating, “Yes, I’m interpreting this correctly.”

The company reported that Musk aims to elevate its market value from over $1 trillion today to an astonishing $8.5 trillion over the next decade.

If he achieves this level of growth, the 54-year-old mogul could obtain additional shares in the company, raising his stake from nearly 16% to more than 25%, thus propelling the world’s richest individual’s fortune to exceed $200 billion.

Current estimates of Musk’s net worth vary; however, live rankings from Forbes indicate that the South African-born entrepreneur’s wealth stands at $43.09 billion, while Larry Ellison, co-founder of Oracle, follows with $200 billion.

Tesla’s incentive plan was revealed in a filing with the U.S. Securities and Exchange Commission on Friday.

This filing paved the way for a potential $55.8 billion bonus, linked to a compensation deal that Musk received in 2018, approved by Tesla shareholders.

“Ultimately, this new award aims to build on the successes of the CEO Performance Awards framework established in 2018, ensuring that Elon is compensated solely based on performance and motivating him to steer Tesla through its growth phase,” the company stated.

Tesla noted that the new plan also sets a profit goal of 28 times that of the 2018 scheme, depending on the success of new offerings, such as operating 1 million “Robotaxis” and developing 1 million AI-driven Humanoid Robots.

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In defense of Musk’s potential compensation, Tesla noted: “His leadership propels Tesla to become the most valuable company in history.”

The projected $8.5 trillion market value more than doubles the current valuation of Nvidia, the leading chip manufacturer presently recognized as the world’s most valuable company.

Source: www.theguardian.com

Amazon Tests Humanoid Robots for Package Delivery

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Amazon is said to be working on software for humanoid robots intended to serve as delivery personnel and operate “bomber” vans.

The £1.47 trillion technology giant is establishing a “humanoid park” in the US to trial these robots, with insights being shared with tech news outlets, according to individuals involved in the initiative.

Reportedly, the robot could ultimately replace delivery workers. It is designed with artificial intelligence software that powers the robots but utilizes hardware sourced from other companies.

According to reports, the indoor obstacle course at Amazon’s San Francisco offices is about the size of a coffee shop, with hopes that the robots can navigate Amazon’s Libyan vans for deliveries.

Even if a human is operating the vehicle, the robot could potentially expedite drop-off times by managing deliveries to one address while human staff service another. Amazon is also exploring self-driving vehicles through its Zoox division.

As reported, Amazon has over 20,000 Libyan vans in the US, including one stationed in the Humanoid Test Zone. Following successful tests at Humanoid Park, the robots are slated for a real-world “field trip” to attempt package deliveries to customers’ residences.

Amazon has already initiated trials with humanoid robots and is utilizing devices developed by US-based Agility Robotics within its warehouses. Agility CEO Peggy Johnson mentioned to the Guardian last year that their humanoid robots are enabling employees to transition into “robot manager” roles.

Last year, Amazon obtained permission to test drone flights beyond the line of sight of British human controllers, furthering its innovations in home delivery technology.

Professor Subramanian Ramamoorthy, head of robot learning and autonomy at the University of Edinburgh, acknowledged that Amazon has a respected robotics team, emphasizing that their focus on “last-mile” delivery is expected. He noted that humanoid robot hardware is advanced enough for these tasks, but highlighted the challenge of achieving reliable performance outside controlled environments like the proposed “humanoid park.”

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He remarked: “If Amazon restricts the environment, utilizing relatively clear driveways and standard doorway layouts, the task becomes fairly straightforward. Challenges arise as the environment becomes more diverse, particularly with variables like pets and small children entering the equation.”

Amazon has been approached for a comment.

Source: www.theguardian.com

Tesla asserts Elon Musk was awarded a $56 billion compensation package even though a judge found it to be invalid.

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According to court documents released on Friday, Tesla Inc. states that Elon Musk has emerged victorious in a legal battle over his $56 billion compensation package. This victory comes after shareholders voted in favor of the pay, despite a judge previously setting it aside earlier this year.

The company’s submission comes following Tesla shareholders’ approval of his stock option package for 2018, conducted two weeks ago. This decision was made after a Delaware judge voided the compensation in January due to alleged mismanagement by Musk during negotiations and misleading shareholders about critical details.

The ongoing lawsuit has strained Musk’s relationship with Tesla, as the company grapples with declining sales and mounting competition. Musk has hinted at developing products outside of Tesla if he fails to secure a larger ownership stake.

In its proposal, Tesla has outlined to Delaware Chancery Court Judge Katherine McCormick how the final order should be drafted to implement her January ruling. The company argues that the order should declare “judgment is entered in favor of the defendants.”

Shareholders’ lawyers are urging the judge to uphold the previous ruling that invalidated Musk’s compensation package. They are seeking a directive for Tesla to issue billions of dollars in Tesla stock to cover legal expenses.

Tesla has suggested a fair fee of up to $13.6 million.

McCormick has instructed both parties to prepare briefs discussing the impact of the shareholder vote on the case and to schedule oral arguments on the matter in late July or early August.

Oral arguments on costs are set for July 8, with a decision likely to be reached after several weeks. Even if the January ruling remains unchanged, McCormick may acknowledge that the shareholder vote indicates little merit in winning the case, as Tesla shareholders appear to desire substantial compensation, which could undermine the plaintiffs’ attorneys’ fee claim based on the value they have provided by overturning the compensation packages.

Source: www.theguardian.com

Elon Musk’s $45 Billion Compensation Package Approved by Tesla Shareholders

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Tesla shareholders have given their approval to a contentious referendum regarding CEO Elon Musk’s leadership, resulting in an agreement to pay him $45bn (£35.3bn).

The results, which were released on Thursday, reflect a struggle for the billionaire tycoon to retain the largest compensation package ever awarded to an executive at a publicly traded U.S. company.

“First of all, I want to say I love you guys so much!” said Musk, expressing his elation as he took the stage after the vote.


The vote followed a ruling by a Delaware judge in January that invalidated a previous payment to Musk, which was then valued at about $56bn (£439m), citing lack of board independence from Musk’s influence and an unlawful process in reaching the amount.

The outcome is seen as a win for Musk and the Tesla board, who actively lobbied shareholders to support the deal. It could potentially challenge the judge’s decision to nullify the payment and aid in demonstrating that shareholders were adequately informed about the payment and directors’ relationships with Musk prior to voting.

Tesla’s board cautioned that Musk may sever ties with the company if the package was not approved, but Musk asserted he had substantial backing from investors.

Despite opposition from major shareholders like Norway’s sovereign wealth fund and the California State Teachers Retirement System, as well as proxy advisory firms Glass Lewis and Institutional Shareholder Services, the vote does not automatically guarantee the release of the funds, and further legal debates are expected.

The vote may trigger additional litigation that could prolong legal proceedings, and the approval of relocating Tesla’s legal headquarters from Delaware to Texas could complicate the matter further.

Tesla initially introduced Musk’s compensation package in 2017, which included stock options based on meeting specific company goals. The package was approved by shareholders in 2018 but faced legal challenges alleging board deception and unfairness.

Judge Katherine McCormick of the Delaware Chancery Court criticized Tesla’s board process for determining Musk’s compensation, highlighting conflicts of interest and close relationships with Musk’s associates. Despite this, the board aims to challenge Judge McCormick’s ruling.

Source: www.theguardian.com

Elon Musk Confirms Tesla Shareholders to Vote on $56 Billion Compensation Package

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Tesla shareholders are set to approve Elon Musk’s $56 billion remuneration package by a significant margin before the company’s important annual general meeting later today. The compensation package, the largest ever granted to a CEO of a U.S. company, will be subject to an investor vote after being previously rejected by a U.S. court this year. Shareholders will also vote on Musk’s proposal to relocate Tesla’s legal base to Texas.

Several investors, including Norway’s sovereign wealth fund and the California State Teachers Retirement System, have indicated their intent to oppose the compensation package. Proxy advisory firms Glass Lewis and Institutional Shareholder Services have also advised shareholders to reject the pay.

On the eve of the meeting, Musk suggested on X (formerly Twitter) that investors overwhelmingly supported both the compensation package and the Texas relocation: “Both Tesla shareholder resolutions have now passed by large margins! Thank you for your support!!”

The results will be disclosed at Tesla’s headquarters in Texas at 4:30pm ET (9:30pm UK time).

Even if the remuneration package is approved, Musk may encounter further obstacles, including potential litigation. Legal experts doubt that the Delaware court that rejected the initial package would accept a new, nonbinding vote to reinstate it.

Originally approved by Tesla’s board in 2018, the compensation has faced legal challenges from shareholders. Judge Kathleen McCormick of Delaware raised concerns about the size and necessity of the package in her January ruling.

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In her ruling, McCormick questioned the necessity of the compensation plan, stating, “Perhaps swayed by the ‘all-positive’ rhetoric or enthralled by Musk’s superstardom, the board never asked the $55.8 billion question: Was this plan truly necessary for Tesla to retain Musk and achieve its goals?”

Source: www.theguardian.com

Tesla’s Chairman warns that Elon Musk may step down if shareholders reject $56 billion compensation package

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The chairman of Tesla has suggested that Elon Musk might leave the company if shareholders do not support his $56 billion (£44 billion) pay package, implying that Musk has other opportunities to explore. Despite the vote next week on the CEO’s compensation deal, Robin Denholm emphasized that the decision is not solely about money, as Musk will still be one of the richest individuals regardless of the outcome.

Denholm mentioned that if the June 13 vote does not go in Musk’s favor, he could potentially depart from Tesla or reduce his presence at the company. In 2018, investors approved a similar compensation plan for Musk, which was later invalidated, prompting the board to seek investors’ approval once more.

Denholm emphasized the importance of Musk’s time and energy, stating that while he has many ideas and potential endeavors, Tesla and its owners should be his primary focus. Concerns have been raised by some investors about Musk’s engagement with Tesla given his involvement in other ventures like SpaceX, xAI, and X.

Denholm clarified that the compensation package includes a provision requiring Musk to hold the Tesla shares he receives for five years before selling any of them. With Musk’s net worth at $203 billion, he is currently ranked as the third wealthiest person globally, according to Bloomberg.

ISS and Glass Lewis have advised shareholders to vote against the proposed pay package, citing excessive payouts. Despite differing opinions among major investors, Denholm stressed the need to uphold the 2018 agreement to ensure Musk’s continued dedication and commitment to Tesla.

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In a bid to streamline operations and facilitate growth, Denholm proposed relocating Tesla’s legal domicile to Texas, highlighting the state’s favorable corporate laws and potential for innovation. She noted that Texas legislators and courts are well-equipped to handle Tesla’s future endeavors effectively.

Analyst Dan Ives believes that while Musk is unlikely to leave Tesla entirely, a rejection of the compensation package could lead to his stepping down as CEO and reducing his involvement with the company over time.

Source: www.theguardian.com

Ex-Twitter executive files lawsuit against Elon Musk seeking $128 million in unpaid severance package

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Elon Musk is currently facing a $128 million lawsuit from four former Twitter executives for allegedly not paying them severance packages after acquiring the social network. The lawsuit, filed in California on Monday, follows a previous legal complaint from rank-and-file employees seeking $500 million in unpaid severance pay.

According to the complaint, “Mr. Musk decided not to provide severance packages to the plaintiffs, so he terminated them without valid cause, invented a false cause, and enlisted employees from various companies to support his decision.”

The four individuals in the lawsuit are former Twitter CEO Parag Agrawal, former CFO Ned Segal, former general counsel Sean Ejit, and former CLO Vijaya Segal, as well as Mr. Gadde. Following Musk’s acquisition of Twitter for $44 billion in 2022, he conducted a mass layoff, claiming at the time that these executives were terminated for cause and therefore not entitled to severance pay.

The lawsuit states, “The ’cause’ was not ‘a business decision approved by the board of directors that Mr. Musk disagrees with.’ In the termination letter, he accused each plaintiff of ‘gross negligence’ and ‘willful misconduct’ without providing any evidence to support this allegation.” Neither Mr. Musk nor Mr. No has commented publicly on the matter, and Alex Spiro, a lawyer who often represents Mr. Musk, has not responded to requests for comment.

This lawsuit is one of several linked to Musk’s involuntary takeover of Twitter and subsequent operation of the platform, now named X. Furthermore, the National Labor Relations Board filed a complaint earlier this year, alleging that Musk’s SpaceX unlawfully terminated eight employees after they criticized his leadership.

After assuming control of the company, Musk disclosed that he laid off approximately 80% of Twitter’s staff during an interview with the BBC last year. Since Musk’s acquisition, the platform has encountered numerous challenges, including a decrease in advertising revenue and a rise in hate speech as content moderation efforts were scaled back. Although Musk initially attempted to withdraw from the deal, Twitter sued to enforce its completion.

Musk attributed the decline in ad revenue to anti-hate watchdog groups that released a report detailing racist and extremist content on the platform. He is currently engaged in ongoing legal battles against two of these organizations, Media Matters and the Center for Countering Digital Hate. A California judge is expected to make a decision this week on whether to dismiss the lawsuit against the Center for Countering Digital Hate.

Source: www.theguardian.com

Philadelphia Museum of Science under investigation after receiving package with two preserved fetuses

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Philadelphia police are investigating the origin of a package containing two preserved fetuses in glass bottles that was sent to the city’s Museum of Medical Sciences.

Museum staff reported receiving the package on Tuesday morning, according to a police statement.

The package was addressed to the museum curator, had no return address, and contained a letter from someone claiming to be a retired doctor, stating that the two specimens were a gift to the museum.

“There is no proper documentation, provenance or information that would allow us to accept it,” says Mütter Museum curator Anna Dodi. told NBC Philadelphia.. “Obviously they looked like human remains, so we had to call the authorities.”

of Mutter Museum It is part of the Philadelphia College of Physicians and features a collection of preserved anatomical specimens, models, and medical instruments.

The museum accepts donations, especially those involving human remains, but the process requires research and a detailed explanation of the object’s history.

Dody, who has been the museum’s curator for nearly 20 years, said the donation was “unusual, unusual and completely inappropriate procedure.” She told NBC News to discourage others from sending such “unsolicited anonymous remains.”

The fetus was handed over to the medical examiner’s office for further investigation. Philadelphia Police will provide additional information as it becomes available.

Source: www.nbcnews.com