Tesla investors today voted to authorize a settlement strategy that would pay Elon Musk more than $1 trillion over the next years if he strikes all of the strategy’s objectives. Musk won over 75 percent of the vote, according to the statement at today’s investor conference.

The pay strategy would offer Musk 423,743,904 shares, granted in 12 tranches of 35,311,992 shares each if Tesla accomplishes different functional objectives and market price turning points. Objectives consist of providing 20 million automobiles, acquiring 10 million Full Self-Driving memberships, providing 1 million “AI robotics,” putting 1 million robotaxis in operation, and attaining a $400 billion changed EBITDA (incomes before interest, taxes, devaluation, and amortization).

Musk has actually threatened to leave if he does not get a bigger share of Tesla. He informed financiers last month, “It’s not like I’m going to go invest the cash. It’s simply, if we develop this robotic army, do I have at least a strong impact over that robotic army? Not control, however a strong impact. That’s what it boils down to in a nutshell. I do not feel comfy structure that robotic army if I do not have at least a strong impact.”

The strategy has 12 market capitalization turning points peaking at $8.5 trillion. The worth of Musk’s award is approximated to surpass $1 trillion if he strikes all functional and market capitalization objectives. Musk would increase his ownership stake to 24.8 percent of Tesla, or 28.8 percent if Tesla winds up winning an appeal in the lawsuit that voided his 2018 pay strategy.

Tesla Chair Robyn Denholm has actually argued that Musk requires huge pay bundles to remain determined. Some financiers have actually stated $1 trillion is excessive for a CEO who invests much of his time running other business such as SpaceX, X (previously Twitter), and xAI.

New York City Comptroller Thomas DiNapoli, who runs a state retirement fund that owns over 3.3 million shares, knocked the pay strategy in a webinar recentlyHe stated that Musk’s existing stake in Tesla need to currently “be reward enough to drive efficiency. The concept that another huge equity award will in some way refocus a male who is hopelessly sidetracked is both illogical and contrary to the proof. This is not spend for efficiency; this is spend for unattended power.”

Musk and his side hustles

With Musk costs more time at xAI, “some significant Tesla financiers have actually independently pushed magnates and board members about just how much attention Musk was really paying to the business and about whether there is a CEO succession strategy,” a Wall Street Journal short article on Tuesday stated. “An uncommonly big contingent of Tesla board members, consisting of chair Robyn Denholm, previous Chipotle CFO Jack Hartung and Tesla co-founder JB Straubel, met huge financiers in New York recently to promote for Musk’s proposed brand-new pay plan.”