Elon Musk lands $2.6B pay deal, if Tesla can deliverby Justin King
Some analysts criticized the incentive package, however it was reportedly approved by a "wide margin."
Tesla shareholders have reportedly approved a compensation package for CEO Elon Musk that could be worth $2.6 billion or more.
The value of the incentive package sparked criticism from some shareholders and analysts. It was approved by a "wide margin," however, sources have told CNBC.
Musk is not guaranteed to receive the full $2.6 billion in stock options, which are split into a dozen tranches that will only vest if the company achieves increasing performance and operational targets over the course of a decade.
Tesla will have to increase revenue from $20 billion and eventually hit $175 billion, with adjusted earnings increasing over time from $1.5 billion to $14 billion.
CNBC notes that Musk could ultimately earn more than $55 billion if Tesla's market cap experiences a 12-fold jump from its current level of around $52 billion.
"If all of these milestones were to be achieved, Tesla will have meaningfully achieved its mission of transitioning the world to sustainable energy and will have become one of the most valuable and successful companies in the world," the company wrote in a proxy statement. "This is our ambition."