A proposal that could potentially elevate Elon Musk to become the world’s first trillionaire is receiving strong criticism as “extremely disturbing.”
Shareholders of the American electric car manufacturer Tesla have given the green light to a massive compensation package for its unconventional CEO. Already holding the title of the wealthiest individual globally, with an estimated fortune of £380 billion, this arrangement could grant him nearly $1 trillion (£760 billion) in Tesla shares over the next ten years.
However, securing this record-breaking payout is uncertain and contingent on Tesla achieving several challenging objectives. These objectives include a five-fold increase in Tesla’s market capitalization, the sale of one million self-driving Robotaxis, and the development of humanoid robots.
The mere possibility of one individual, particularly someone as controversial as Mr. Musk, receiving such an exorbitant sum has sparked immediate backlash. Andy Prendergast, National Secretary of the GMB union, described the trillion-pound compensation for Elon Musk as not just excessive but emblematic of societal issues. He criticized the payment as a disrespectful gesture to hardworking individuals facing stagnant wages amid escalating living costs.
Matt Britzman, a senior equity analyst at broker Hargreaves Lansdown, labeled the $1 trillion CEO compensation package as outrageous, highlighting the monumental challenges Tesla must overcome to unlock it.
Elon Musk’s potential pay package would nearly match the economic output of Poland, a country of 36 million inhabitants. This news closely follows Mr. Musk’s achievement of surpassing $500 billion in personal wealth, owning companies like SpaceX and X (formerly Twitter).
Reflecting on Mr. Musk’s compensation, Tesla shareholder Ross Gerber remarked that it added to the list of stunning occurrences in the business world. Concerns over Musk’s public image led Gerber Kawasaki, a leading investment firm, to reduce its Tesla holdings.
Andrew Speke, representing the High Pay Centre think tank, criticized Musk’s $1 trillion compensation as a grim milestone, highlighting the widening wealth gap and advocating for a fairer economic system.
Despite his brief venture into politics and public controversies, Tesla shareholders are hopeful that Musk will refocus on the company’s core operations.
Elon Musk’s unconventional behavior and personal life have contributed to his widespread recognition. Reports suggest he has multiple children from different relationships, adding to his colorful persona.
The approval of this pay deal coincides with Tesla facing sales challenges due to a lack of new vehicle models, backlash over Musk’s political affiliations, and competition from Chinese automakers.
Should Elon Musk attain trillionaire status, he would surpass all others by a significant margin based on current standings. His wealth would far outstrip that of Larry Ellison and Jeff Bezos, making him the wealthiest individual globally.