(MENAFN) Tesla shareholders have greenlit a staggering compensation arrangement valued at approximately $1 trillion for CEO Elon Musk, with payment tied directly to achieving ambitious performance benchmarks.

During the electric vehicle manufacturer's annual shareholder assembly conducted Thursday in Austin, Texas, investors cast ballots on multiple proposals, including the contentious 2025 CEO Performance Award.

More than 75% of shareholders voted in favor of the proposal to pay Musk.

Record-Breaking Compensation Structure
In September, Tesla's board of directors sent a letter to shareholders regarding the payment proposal to Musk if he delivers exceptional financial returns and remains in a leadership role at Tesla in the coming years.

The letter, which outlined the targets Musk must meet to receive the full payment, stated that these included expanding Tesla's new robotaxi business and increasing the company's market value by $7.5 trillion.

The correspondence detailed additional stipulations requiring Musk's continued executive presence. The letter also said that other conditions, such as Musk staying with the company for 7.5 to 10 years, must be met in order for him to receive the full performance bonus.

Unprecedented Equity Stakes
If Tesla's market value reaches $8.5 trillion, Musk is expected to receive approximately 12% of the company's shares.

It is stated that the value of the payment to be made would be approximately $1 trillion.

The approval marks one of corporate history's most substantial executive compensation packages, dwarfing traditional CEO remuneration structures. The performance-contingent framework links Musk's financial windfall to transformative business expansion and sustained market capitalization growth over the next decade.

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