Tesla shareholders have voted overwhelmingly in favor of CEO Elon Musk’s landmark compensation deal, valued at nearly $1 trillion, in what is now one of the largest executive pay packages in corporate history. The vote took place during the company’s annual shareholders’ meeting held in Austin, Texas, with over 75% of voting shares backing the proposal.
The approval comes despite earlier objections from several proxy advisory firms who argued that the payout was excessively large and could dilute shareholder value. However, Tesla’s board maintained that the package is directly tied to Musk’s performance and the company’s long-term growth targets.
Board Chair Robyn Denholm defended the decision, stating that Musk’s leadership has been central to Tesla’s evolution from a niche electric-vehicle startup into the world’s most valuable automotive manufacturer.
“This vote is a reaffirmation of our belief that Elon remains mission-critical to Tesla’s future,” Denholm said during the session.
The compensation plan is structured around a series of performance milestones linked to Tesla’s market capitalization, revenue growth, and operational expansion. Musk will only receive the full payout if Tesla continues to meet ambitious targets for scaling manufacturing, advancing battery technology, and strengthening its position in global EV markets.
The vote signals investor confidence in Tesla’s direction amid increasing competition in the electric vehicle sector, intensifying regulatory scrutiny, and broader economic uncertainty. It also reinforces Musk’s influence over the company at a time when his commitments span multiple ventures, including SpaceX, Neuralink, and X (formerly Twitter).
Market analysts note that the decision may bolster investor morale in the short term, though debate is expected to continue regarding corporate governance and executive compensation standards.
