Tesla Secures Path for Potential $1 Trillion Musk Pay Package After Texas Relocation
Tesla is positioned to award CEO Elon Musk a compensation package potentially valued at $1 trillion (approximately Rp. 16,000 trillion) following its relocation of its legal domicile from Delaware to texas. The move comes after shareholders last year attempted to overturn Musk’s previously approved 2018 compensation package, worth $56 billion, which a Delaware court deemed excessive and detrimental to investors.Musk later urged companies to leave Delaware, citing a perceived unfavorable legal environment, and Tesla officially re-domiciled in texas. Texas corporate law is viewed as offering stronger protections to corporate management and making it more difficult for shareholders to successfully sue over board decisions.
“Tesla is fully protected from shareholder lawsuits in Texas,” stated Ann Lipton, a professor of law at the University of Colorado, as quoted by Reuters on Sunday, September 7, 2025.
Unlike the 2018 package,Musk will be able to exercise his important voting rights – holding approximately 13.5% of Tesla shares – at shareholder meetings. Last year, a shareholder ratification effort of the 2018 package failed to overturn the Delaware court’s ruling.
The combination of Musk’s substantial ownership stake and the more favorable legal climate in Texas creates a scenario where the massive compensation package faces minimal obstacles. The potential payout would further solidify Musk’s position as the world’s wealthiest individual and result in the largest CEO compensation package in corporate history.