Tesla Chief Executive Elon Musk’s proposed multibillion-dollar compensation plan was approved Wednesday by shareholders, according to multiple outlets.
The plan is unique in that it is contingent on achieving market cap and operational milestones that would make Tesla one of the most valuable companies in the world. In order for Musk to fully vest, Tesla’s market cap would have to grow to $650 billion and important revenue and profitability goals would also have to be achieved.
The package will keep Musk at the company for the next 10 years and is a 100% at-risk performance award. Musk will not be compensated unless shareholders do well. That said, Musk could ultimately earn up to $55.8 billion in stock and awards if Tesla’s market cap grows from its current $52 billion to $650 billion.
Musk and his brother Kimbal, both on the Tesla board of directors, recused themselves from the vote.