It's official: Tesla shareholders have approved chairman and CEO Elon Musk's multibillion-dollar stock option pay proposal, which could award Musk $2.6 billion in stock options in 12 tranches, or portions.
Overall, Musk could earn up to $55.8 billion in stock and awards.
The catch is that his compensation is tied to the company's success, so Musk will only be paid if Tesla reaches a set of aggressive milestones that aim to grow the company's valuation from its current $52 billion to more than $650 billion.
When the billionaire first announced the plan, Andrew Ross Sorkin in The New York Times called it possibly "the boldest pay plan in corporate history." Supporters have said the plan will align Musk with shareholders and could greatly increase the company's value.
Musk is worth a reported $20 billion, but the official salary he currently receives from Tesla is far more modest: The CEO earns just around $37,000 per year. (Musk is also the CEO of SpaceX, which is privately held.)