A proposed agreement that could potentially elevate Elon Musk to the status of the world’s first trillionaire has been strongly criticized as “extremely distasteful.” Shareholders of the American electric car manufacturer Tesla have given the green light to a massive deal for their unconventional CEO. Musk, already renowned as the wealthiest individual globally with an estimated fortune of £380 billion, stands to receive nearly $1 trillion (£760 billion) worth of Tesla shares over the next ten years under this arrangement.
However, the realization of this record-breaking payout is contingent on Tesla meeting a series of challenging objectives. These targets include achieving a fivefold surge in Tesla’s market capitalization, selling one million self-driving Robotaxis, and advancing in the development of humanoid robots.
The notion of one individual, particularly someone as polarizing as Mr. Musk, potentially receiving such an astronomical sum has sparked immediate backlash. Andy Prendergast, National Secretary of the GMB union, expressed strong disapproval, labeling the trillion-pound payout for Elon Musk as beyond distasteful and emblematic of societal issues. He emphasized the stark contrast between Musk’s potential earnings and the stagnant wages of hardworking individuals facing escalating costs of living.
Matt Britzman, a senior equity analyst at brokerage firm Hargreaves Lansdown, deemed the $1 trillion CEO compensation package as outrageous, highlighting the colossal challenges Tesla must overcome to unlock this unprecedented reward.
If materialized, Musk’s remuneration package would approach the economic size of Poland, a nation with a population of 36 million. This follows Musk’s achievement of surpassing $500 billion in personal wealth, in addition to owning SpaceX and the social media platform X, formerly known as Twitter.
Tesla shareholder Ross Gerber described Musk’s pay deal as another remarkable occurrence in the business world. Gerber, CEO of investment firm Gerber Kawasaki, indicated concerns over the public perception of Musk and the potential impact on Tesla’s stock.
Andrew Speke, representing the High Pay Centre think tank, characterized Musk’s $1 trillion payment package as a bleak milestone, reflecting a capitalist model that disproportionately rewards a select few while many endure declining living standards. He urged advocates of free-market economics to challenge such excesses in pursuit of a fairer economic paradigm.
Amid Tesla’s challenges with sales, public image, and market competition, shareholders hope that Musk will redirect his focus to the core business following his brief and controversial foray into politics by supporting Donald Trump before and after the US election.
Musk’s unconventional persona and colorful personal life, including reports of having numerous children with multiple partners, have contributed to his widespread recognition.
The approval of the pay deal coincides with Tesla facing sales declines due to product stagnation, public reaction to Musk’s political affiliations, and competition from Chinese automakers. If Musk attains trillionaire status, he would significantly surpass other prominent billionaires like Larry Ellison and Jeff Bezos based on current wealth standings.
