A proposed agreement with the potential to propel Elon Musk to become the world’s first trillionaire is being met with strong criticism. Tesla shareholders have given the green light to a massive compensation plan for the unconventional CEO, who is already the wealthiest individual globally, estimated to hold a fortune of £380 billion. The deal could see Musk receive nearly $1 trillion (£760 billion) in Tesla shares over the next decade, contingent upon the company achieving ambitious milestones such as a five-fold increase in market value, selling a million self-driving Robotaxis, and creating humanoid robots.
The sheer magnitude of the payout, which would be the largest in corporate history, has sparked immediate backlash, particularly due to Musk’s polarizing reputation. Critics, including Andy Prendergast from the GMB union, have condemned the exorbitant sum as emblematic of societal issues like escalating inequality. Despite the uncertainties surrounding the deal, analysts like Matt Britzman from Hargreaves Lansdown find the $1 trillion CEO compensation package and Tesla’s formidable targets equally astounding.
If realized, Musk’s potential pay package would rival the GDP of Poland, home to 36 million people. This development follows Musk’s ascent to a personal fortune exceeding $500 billion, as he continues to diversify his portfolio with ventures like SpaceX and previously owned platforms like Twitter. However, skepticism remains high among some Tesla shareholders, like Ross Gerber, who express concerns about Musk’s public image and detachment from reality.
Critics like Andrew Speke from the High Pay Centre view Musk’s proposed compensation as a distressing indication of a capitalist system favoring extreme wealth concentration. With Tesla facing challenges in the market, shareholders are eager for Musk to refocus on the company’s core operations following his controversial stint in politics, where his alliance with former President Donald Trump led to public scrutiny and a subsequent fallout between the two figures.
Musk’s eccentric personality and eventful personal life, including reports of multiple children with different partners, have only added to his notoriety. As Tesla grapples with sales declines, political controversies, and increased competition, the approval of Musk’s pay deal raises concerns about the state of capitalism and income distribution. If Musk attains trillionaire status, he would significantly surpass other billionaires like Larry Ellison and Jeff Bezos, further accentuating the wealth disparity within the global economy.