Tesla Proposes Record $1 Trillion Pay Package for Elon Musk

SEP 5·UPDATED SEP 5

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Above: Elon Musk attends a delivery ceremony of Tesla's premium electric sedan Model S vehicles to customers in Tokyo, Japan, on Sept. 8, 2014. Image copyright: Yuriko Nakao/Bloomberg/Getty Images

The Spin

Pro-establishment narrative

This compensation package is a smart business strategy that aligns leadership incentives with shareholder value creation. Musk transformed Tesla from a niche startup into the world's most valuable automaker, and retaining his visionary leadership is essential for achieving unprecedented growth targets. The performance-based structure ensures that shareholders only pay for results delivered, making it a win-win proposition that can generate massive returns.

Entrepreneur X

Establishment-critical narrative

The proposed trillion-dollar payout raises serious governance concerns about Tesla's captive board, which would recklessly reward Musk at the expense of investors. Recent performance has shown declining sales, falling profits and political distractions that have damaged the company. However, the board continues to enable Musk's tight control over the automaker despite his increasingly divided attention across multiple ventures.

The New York Times Australian Financial Review