- Tesla shareholders approve a $2.6 billion stock option grant for Chairman and CEO Elon Musk.
- The company will need to meet key milestones in order for Musk to vest the options.
- The plan was supported by some institutional shareholders, but opposed by others, and by two major proxy advisory firms.
Musk could earn more than $50 billion over the next several years if Tesla hits certain key milestones and stays on in his current role at the company he co-founded.
The source who reported the vote count declined to be identified. Official vote totals will be announced in a filing with the Securities and Exchange Commission later Wednesday.
The grant gives Musk $2.6 billion in stock options in 12 tranches that each vest as the company hits key performance milestones over 10 years.
Although nominally valued at $2.6 billion, Musk’s pay package could generate $55 billion or more for Musk if Tesla hits a series of aggressive financial goals.The pay plan approval comes weeks before the Palo Alto automaker reveals whether its troubled Model 3 electric-sedan program is getting back on track and before it announces first-quarter losses that some analysts say could reach $1 billion.