Elon Musk’s massive $56 billion Tesla pay package, approved by shareholders, sparks debate seeing the compensation plan, tied to Tesla’s stock performance, is larger than 75% of the entire budget allocated to UK schools in 2024-25 and nearly a quarter of the NHS budget
His numerous devotees regarded Mr. Musk as a valuable asset, and shareholders concurred, with approximately 72% of the voting shares supporting the agreement.
Tesla, SpaceX, X (formerly Twitter), Starlink, Neuralink, and X.ai, his most recent AI project, are among his enterprises.
It could be argued that Tesla unlocked the US market for electric vehicles, SpaceX has recently launched the world’s most powerful rocket into orbit, and a man who volunteered to be the first human to have a Neuralink microchip implanted into his brain is now capable of operating a computer with his thoughts.
The $56 billion query as of today is: would this portfolio have been as successful without him?
Tesla’s expansion
Mr. Musk’s compensation package was primarily intended to encourage him to remain at Tesla.
His future at the electric car manufacturer had been the subject of speculation before 2018 when the company’s directors reached a consensus.
The agreement was designed to ensure that Mr. Musk would not receive compensation if he failed to achieve specific milestones, including Tesla’s market value, sales, and underlying profit.
Although, at that time, Forbes magazine’s 2018 wealthy list indicated that he was worth nearly $20 billion, it is unlikely that he was searching for loose change in the back of the sofa.
However, the potential payout was astronomical if he were to achieve specific objectives.
In all honesty, Mr. Musk has accomplished the objectives that were established for him. For instance, Tesla’s market value had increased from $54 billion to the $650 billion objective specified in the initial agreement.
Subsequently, it has declined to $570 billion.
‘The Reason I Opposed Musk’s Pay Increase’
Musk’s profile
The 2022 Tesla wobble was attributed to Mr. Musk’s distraction from Tesla’s operations to focus on X. Consequently, his absence rather than his presence was the contributing factor.
However, it is evident that his profile significantly enhances the value of these organizations.
Mr. Musk is not a proponent of communications teams, as he prefers to disseminate to his 187 million followers directly on his social network.
If you have Mr. Musk on your side, your public relations efforts are self-sufficient, resulting in varied but consistently high-profile outcomes.
He generates an inexhaustible stream of global news headlines from behind his keyboard, and only a few individuals possess this ability to generate publicity that money cannot purchase.
Tesla investors endorse the $56 billion Musk compensation agreement.
Musk is against the imposition of tariffs on Chinese electric vehicles by the United States.
Elon Musk witnesses the cancellation of a $56 billion Tesla compensation agreement in a Delaware court.
Additionally, he has substantial political influence, conferring with numerous world leaders, including President Xi Jinping of China.
He asserts that he has conversed with Russian President Vladimir Putin via telephone and has previously filmed a broadcast of a conversation with Israeli Prime Minister Benjamin Netanyahu.
He is a workaholic who is ferocious and demanding, refusing to accept any form of denial. According to former employees, even the most dedicated individuals experience burnout, whereas he does not.
In the past, Dolly Singh, employed by Mr. Musk at SpaceX from 2008 to 2013, described him as an “incredible leader” to BBC News.
“If that weren’t the case, he wouldn’t be accomplishing what he is,” she indicated in 2022.
However, she also acknowledged that her employment with him was “exhausting.”
High-risk enterprise
Even though shareholders supported Mr. Musk’s compensation package, legal professionals are still determining whether the court that initially halted the transaction will permit the company to re-vote and reinstate his compensation.
However, Steve Westly, an erstwhile Tesla supporter, told the BBC earlier this year that Musk’s retention is unnecessary.
“Elon is a visionary who is distinctive…”However, this implies that he is now indispensable for managing all those organizations.
“No one can maintain their position of authority indefinitely, particularly when they are simultaneously responsible for the management of seven organizations.”
Additionally, there have been failures in addition to the successes that Mr. Musk has managed.
Tesla was unable to generate any revenue for an extended period. Subsequently, a remark regarding the company’s potential for privatization resulted in financial instability, which led to an investigation by regulators that ultimately led to his resignation as CEO.
Two former Tesla employees have informed me that they were terminated and their professional reputations were damaged due to their public statements regarding safety concerns.
Tesla was on the brink of bankruptcy. Each failure incurs a cost of millions of dollars for SpaceX, as not all of its rocket launches are successful. The Neuralink chip began to malfunction shortly after being implanted; however, this issue has been resolved.
Mr. Musk recently asserted that Starlink has achieved financial equilibrium; however, Bloomberg recently published a report implying that he may have underestimated the substantial expense of establishing its satellite network infrastructure.
However, the United States maintains an alternative perspective regarding hazardous enterprises.
Mustafa Suleyman, who co-founded Google DeepMind and has recently joined Microsoft, stated to the BBC that the US market is vast and more prone to taking bold risks.
He also pointed out that the United Kingdom could benefit from greater tolerance and celebration of its failures.
Mr. Musk does not demonstrate any signs of having been wounded by failure. He is defiant, dominant, and boisterous in an outward manner.
He announced today that he has sent a cake to Delaware, which attempted to obstruct his $56 billion Tesla pay agreement.
It is inscribed with his favorite phrase, “vox Populi, vox dei,” which translates to “the voice of the people is the voice of God.”
