Musk, flanked by dancing Optimus robots at the announcement, said "what we're about to embark upon is not merely a new chapter of the future of Tesla, but a whole new book." The deal doesn't mean Musk will get $1 trillion immediately or even get a salary. Instead, it sets him up to earn hundreds of billions and gain more control over Tesla if he meets certain milestones and boosts profits along the way.
The pay package is divided into 12 tranches tied to operational, adjusted profit, and market cap targets. Each tranche gives more shares to Musk if those goals are met. For example, Tesla will have to grow its current $1.5 trillion market cap to $8.5 trillion in a decade for Musk to qualify for the full potential payout of this package.
The vote came after two months of aggressive campaigning by Tesla, its board, and several executives. The company made public appeals for shareholders to approve the package and even aired TV ads about the vote -- something it doesn't even do for its cars. Chairwoman Robyn Denholm said at Thursday's meeting, "Tesla is at an inflection point -- and this last year has been a critical one in our history."
Musk urged shareholders to approve the package as it was the easiest way to give him more voting control over the company. He currently owns around 15% and has indicated he might leave Tesla if he doesn't get around 25% control. This would protect him from being ousted and losing control of the "robot army" Tesla is building, Musk has said.