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‘I guess he will use that to go to Mars’: X reacts to Tesla’s $1,000,000,000,000 offer to Elon Musk
Tesla’s new compensation agreement for CEO Elon Musk could turn the world's richest man into the first trillionaire.
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Tesla proposed a new compensation agreement for CEO Elon Musk, which could potentially turn the world’s richest man into a trillionaire. Reportedly, the unprecedented massive pay package would be submitted for shareholder approval in November. However, it comes with certain conditions, including one in which the executive has to boost the company’s valuation into trillions over the next decade.
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What did social media say?
The EV marker's announcement prompted varied remarks on social media, with some taking the route of hilarity while commenting. An individual remarked, “I guess he will use that to go to Mars.” Another posted, “Ever thought why the rich get richer? They make more money than they spend to live on, and the rest is invested in buying ownership in business or development. The poor get poorer because they spend more money than they make, adding interest expense, which buys nothing except quicker timing to possess the things you want, but making them far more expensive.”
A third expressed, “Yea! He’s still gonna be underpaid!” A fourth wrote, “Employees are overworked, investors losing money, yet Musk gets a payday bigger than some countries’ GDP.”
Details of the compensation:
According to the proposed plan, if the company hits its target market value of $8.6 trillion, Musk could get up to 12% of Tesla's stock, worth $1.03 trillion, reported Reuters. However, the plan requires boosting Tesla's valuation by about $7.5 trillion in the next decade.
Experts react:
"While bold compensation tied to performance is nothing new, the sheer scale here sets a new bar for CEO incentives and will dominate boardroom debates everywhere," Adam Sarhan, chief executive of 50 Park Investments in New York, told Reuters.
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"This is a ridiculously large pay package. It raises lots of questions, but last year Musk moved Tesla from Delaware to Texas in order to avoid all those questions," Brian Quinn, professor at Boston College Law School, told the outlet.
