On Thursday, Tesla Inc ( TSLA ) shareholders approved a compensation plan for CEO Elon Musk that was voided by a Delaware judge.

The new pay package could total $56 billion for Musk, but comes as many Tesla shareholders have also been rewarded with strong share performance over the last five-plus years. Here's a look at how much Tesla shares have risen since then.

What Happened: Tesla shareholders overwhelmingly approved a compensation package for Musk during the 2024 annual shareholders meeting.

While some criticize the compensation as being high and leading to future dilution of shares, the original 2018 plan was approved by 81% of votes, and Musk helped the company pass many milestones.

The 2018 plan was announced by the company on Jan. 23, 2018 and approved by shareholders on March 21, 2018.

Since that time, Tesla shares are up 727.7%.

Based on a split-adjusted price of $21.50 for Tesla shares at the time, a $1,000 investment could have purchased 46.51 Tesla shares. That $1,000 investment would be worth $8,277.38 today.

For comparison, the same $1,000 invested in the SPDR S&P 500 ETF Trust ( SPY ) , which tracks the S&P 500, would have returned less. The $1,000 could have bought 3.66 SPY shares and would be worth $1,982.48. This represents a return of 98.2% over the same time period.

Related Link: Elon Musk Thanks Shareholders, Says Tesla ‘Starting A New Book,’ Could Hit $30 Trillion Valuation: “Hot D***, I Love You Guys’

Why It's Important: The 2018 compensation plan was put in place as a "long-term performance award" for Musk at the time.

"Compensation is tied to market capitalization and operational milestones that are based on Tesla becoming one of the most valuable companies in the world," the company said at the time.

In order for Musk to be paid out the billions in compensation, it required hitting milestones based on market capitalization, revenue and profits. When Tesla hit $650 billion in market capitalization, Musk had unlocked all the tranches of the plan.

It's important to remember that if Tesla had not reached these milestones, Musk may have made zero. Analysts and financial experts said many of the milestones were next to impossible to hit, but the company prevailed.

"Elon will receive no guaranteed compensation of any kind – no salary, no cash bonuses, and no equity that vests simply by the passage of time," the company said at the time.

The plan was said to ensure that Musk would only be compensated if Tesla and shareholders do well.

Based on the math above, Tesla shareholders have done quite well.

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Image generated using artificial intelligence via Midjourney.