What is the Elon Musk $1 trillion dollar pay package?
The news that Elon Musk could earn a $1 trillion salary sounds unbelievable. Elon Musk will really start making that much cash henceforth? My point is, is Tesla really making so much money that it can give its CEO $1T pay package?
The way this news is getting promoted, I think, it sounds very misleading.
Elon Musk is not getting a direct trillion-dollar salary from today. It’s not like his salary has suddenly become that huge amount.
What happened is that the owners of Tesla made a huge bet with him. They basically gave him a huge incentive to earn Tesla shares (stock options). But at present, he is not getting any cash. He will have to complete twelve different milestones to reach there.
He only gets it if Tesla achieves something incredible.
For him to get the full $1 trillion worth of shares, Tesla must become the world’s most valuable company by far. At that time, it will be worth over eight times more than it is now.
To reach there, he will have to put a million self-driving taxis on the road and manufacture a million helper robots called Optimus.
This deal guarantees that if he succeeds, every Tesla shareholder gets rich, and only then does he get his massive reward.
This pay package deal is a huge potential bonus (like a lottery prize) for Elon Musk. But he will get it only if he successfully makes Tesla a giant, futuristic empire. If he fails to hit those extreme targets, he gets nothing from this deal.
