Tesla shareholders have approved by a wide margin a proposal to award Chairman and CEO Elon Musk a massive multibillion-dollar stock grant, a source at the meeting told CNBC.
Musk could earn more than $50 billion over the next several years if Tesla hits certain key milestones and he stays on in his current role at the company he co-founded.
The source who reported the vote count declined to be identified. Official vote totals will be announced in a filing with the Securities and Exchange Commission later Wednesday.
U.S. & World
The grant gives Musk $2.6 billion in stock options in 12 tranches that each vest as the company hits key performance milestones over 10 years. Musk needs to hit 12 market capitalization milestones and 16 revenue or earnings before interest, taxes, depreciation and amortization targets in order to vest the entire award. Tesla has to reach a market cap of $100 billion for the first tranche to vest, and then each of the remaining 11 tranches require an additional $50 billion in market value.