Tesla CEO's Compensation Plan: Investors Vote

Tesla (TSLA) investors are voting on a proposal for CEO Elon Musk that involves the largest compensation package in corporate history, valued at $878 billion. The decision is expected to be announced this Thursday at the annual meeting in Austin, and it comes alongside other measures aimed at redefining the company’s leadership structure.

The proposed plan stipulates that Musk’s payment will be contingent upon achieving a series of operational and market goals, such as delivering 20 million vehicles and deploying one million robotaxis over the next decade.

In this scenario, the company’s market value would need to rise from approximately $1.5 trillion to $8.5 trillion for Musk to receive the full reward.

Many investors support this plan as a vote of confidence in Musk’s vision for Tesla's expansion into artificial intelligence and robotics, while some, including Norway's sovereign wealth fund, argue that it is excessive. The board has warned that if the plan is rejected, Musk may leave the company.