Shareholders of electric car company Tesla Inc approved a compensation package potentially worth $2.6 billion for Chief Executive Officer Elon Musk, though by a lower margin than U.S. CEOs typically receive on pay votes. Excluding votes by Musk and his brother Kimbal, the measure passed with about 73 percent of votes cast. Including the Musk votes, the award passed with about 80 percent support, Tesla said in a Securities and Exchange Commission filing. The compensation award includes no salary or cash bonus for the Silicon Valley billionaire, but sets rewards based on Tesla's market value rising to as much as $650 billion over the next 10 years. The vote result indicated some, but not all big investors were prepared to support a large payout at the founder-led company. If achieved, the award surpasses anything previously granted to top U.S. executives, according to proxy advisory firm Institutional Shareholder Services, which had recommended votes against the compensation.
Musk could own as much as $55.8 billion in Tesla stock and more than a quarter of the electric car company in the next decade if he hits all targets of the new plan.
"At $2.6 billion, the grant value is unprecedented and sets the new high-water mark for an individual executive equity award at a U.S. public company," ISS wrote last month. Shares of Tesla are down 18 percent from a year high reached in September. The com
pany has faced pressure on multiple fronts, from a cash crunch and production delays to increasing competition from rivals.
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