"Elon Musk has once again captured media attention. This time, however, it isn't a rogue X rant or embittered comments about President Trump's abuse of executive authority. Instead, a proposed $1 trillion pay package crafted by Tesla's board and Musk has grabbed headlines. The proposed scheme is ludicrous not only in terms of the highly aspirational 12 milestones that would unlock the benefits, but also in terms of good governance practice."
"Greed may be good but when is enough? Even needing to support 14 children with four different mothers, how much capital does Musk need? The argument that Musk needs additional incentive to lead Tesla to new heights runs entirely counter to the fact that he owns nearly 20% of the company's outstanding shares and will already be well rewarded from any upside in the company's performance."
"Musk is the richest person in the world (or second if you believe that number one is Vladimir Putin), and nearly twice as wealthy as the individuals ranked third and fourth, Larry Ellison and Mark Zuckerberg, respectively. Estimated to be worth over $437 billion, none of Musk's lifestyle, resources, or influence will meaningfully change from any material increase in wealth."
Tesla's board and Elon Musk proposed a $1 trillion pay package tied to 12 highly aspirational milestones that would unlock enormous benefits. The proposal raises serious corporate governance concerns and appears excessive given Musk's existing nearly 20% ownership and massive personal wealth. If Tesla reached an $8.5 trillion market cap, Musk's stake would be worth over $1.6 trillion, far beyond his current estimated $437 billion net worth. Critics note Musk already received a $30 billion award after earlier litigation and accuse him of leveraging control threats to pressure shareholders. Renowned founders did not pursue similar shakedown strategies after going public.
Read at Fortune
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