Tesla shareholders have given a resounding green light to what could become the largest executive pay package in corporate history — a performance-based compensation plan for Elon Musk worth up to $1 trillion. More than 75% of voting investors backed the board’s proposal, despite strong opposition from several major institutional shareholders.

According to the deal, Musk could earn up to 25% of Tesla’s total shares, nearly doubling his current 13% stake, if the company meets a series of ambitious business milestones. Key targets include boosting Tesla’s market capitalization to $8.5 trillion and advancing strategically important ventures such as the robotaxi business.

The board justified the plan as essential to keeping Musk at the helm and ensuring continuity in Tesla’s long-term innovation agenda. If the company fails to meet the outlined goals, Musk will receive nothing, regardless of effort or progress made along the way.

The decision sparked intense debate among large investors. The Norwegian Sovereign Wealth Fund, CalPERS, the New York State Pension Fund, and several labor unions — including the American Federation of Teachers — voted against the plan. Their main objections centered on the potential dilution of shareholder equity and the view that Musk, already Tesla’s largest shareholder, has ample incentive to drive the company’s success without an additional bonus of this scale.

Supporters, however, argue that the package ties Musk’s reward directly to the company’s long-term growth and aligns his interests with those of investors. They also emphasize that Musk’s further leadership is critical as Tesla seeks to expand into new fields such as autonomous vehicles and artificial intelligence.

This is not the first time Musk has secured a historic pay deal. Under a 2019 compensation plan, he received 96 million Tesla shares worth roughly $29 billion, contingent on his continued leadership of the company or oversight of key engineering initiatives through 2027.

In essence, the newly approved compensation package underscores Tesla’s commitment to retaining Musk’s vision and leadership, even as portions of the investor community express growing unease over the unprecedented scale of the payout.