Shareholders of electric car company Tesla have approved a pay package potentially worth $2.6 billion for chief executive Elon Musk, though by a lower margin than US CEOs typically receive on pay votes.
Excluding votes by Musk and his brother Kimbal, the measure passed with about 73% of votes cast.
Including the Musk votes, the award passed with about 80% support, Tesla said in a Securities and Exchange Commission filing.
The compensation award includes no salary or cash bonus for the Silicon Valley billionaire, but sets rewards based on Tesla's market value rising to as much as $650 billion over the next 10 years.
The vote result indicated some, but not all big investors were prepared to support a large payout at the founder-led company.
If achieved, the award surpasses anything previously granted to top US executives, according to proxy advisory firm Institutional Shareholder Services, which had recommended votes against the compensation.
Musk could own as much as $55.8 billion in Tesla stock and more than a quarter of the electric car company in the next decade if he hits all targets of the new plan.
"At $2.6 billion, the grant value is unprecedented and sets the new high-water mark for an individual executive equity award at a US public company," ISS wrote last month.
ISS said it valued the award even higher, at $3.7 billion.
Shares of Tesla are down 18% from a year high reached in September.
The company has faced pressure on multiple fronts, from a cash crunch and production delays to increasing competition from rivals. Some investors are concerned that Musk is distracted by too many projects including his SpaceX rocket launches.
Under the proposed award, which involves stock options that vest in 12 tranches, Tesla's market value must increase to $100 billion for the first tranche to vest and rise in additional $50 billion increments for the remainder.
Tesla was valued at about $53.47 billion at last night's close, according to Thomson Reuters data.
Its shares had fallen nearly 12% since the pay plan was announced, but rose 2% last night to close at $316.53.
Tesla has been struggling to manufacture its Model 3 sedan - for which it holds about 500,000 advance reservations - and has repeatedly pushed back production timelines.
The company has been burning through cash and expects spending to rise this year, even as a host of upcoming projects demand attention and capital, including the new Tesla Semi and the Model Y crossover.
A wave of electric vehicles on the horizon from rivals are also adding pressure.
Global car makers from Ford to Volkswagen are cumulatively investing $90 billion in electrification over the next five years, with luxury models from Audi and Tata Motors Ltd's Jaguar due this summer.
