Elon Musk's Record Pay Package Approved!

Elon Musk and Record Compensation Package

Tesla CEO Elon Musk has received shareholder approval for the largest corporate compensation package in history. At the annual meeting held at his factory in Texas, Musk took the stage alongside dancing robots. The proposal was accepted with over 75% support, allowing Musk to potentially acquire $1 trillion worth of shares over the next decade.

Analysts and experts commented as follows:

MATT BRITZMAN, Senior Equity Analyst at Hargreaves Lansdown: "A $1 trillion CEO compensation package is unusual - but so are the mountainous hurdles Musk must overcome to achieve it. From a shareholder perspective, this provides the best alignment: Musk won't gain anything unless he creates enormous value, and if he achieves the impossible, investors will be sitting on top of a $8.5 trillion giant. 2026 could change many things... Critics raise awareness of the 'key person risk' and that is not wrong. However, investors have raised their voices, and Musk still retains his premium."

MIKE O'ROURKE, Chief Market Strategist at Jones Trading: "Musk's ability to accomplish the impossible in business is undeniable... We find it surprising that Musk has not stopped using his genius in his private companies, especially with Tesla's electric vehicle business showing signs of decline. Thus, it made sense for shareholders to approve the package. However, it seems unlikely for a $1.5 trillion company to grant a $1 trillion compensation package to the world's richest man."

CHRIS BEAUCHAMP, Chief Market Analyst at IG Markets: "If this is performance-based stock options, it should also be noted that it does not need to all be paid upfront. If Musk grows the company to $8.5 trillion, questions will answer themselves. Therefore, I am not worried about how they will pay it."

RUSS MOULD, Investment Director at AJ Bell: "There are rational reasons for shareholders to approve. Musk has tremendous targets to achieve... In this respect, there was no loss for most Tesla shareholders in approving the deal. If Musk receives $1 trillion, shareholders will be in a great position."

BRIAN DUNN, Director of the Institute for Labor Studies at Cornell University: "Is Elon Musk an extraordinary individual? Yes. Does the stock price reflect a reasonable profit multiple? No. The value of Tesla is dependent on a belief that something extraordinary will happen in the future... Does this hope realized with shareholders' money justify a value of $1 trillion? I don't think so."