Ziassity @Ziassity - Twitter Profile

When people look at the size of @Tesla’s proposed performance-based pay package for Elon Musk, I think some are missing the bigger context. Elon’s situation is completely different from that of other mega-cap tech CEOs like Tim Cook, Mark Zuckerberg, or Sundar Pichai. He isn’t running just one company — he runs six. One is already worth $1 trillion, another $400 billion, another $200 billion, and the rest are valued in the tens of billions or billions. So when some argue that a potential $1 trillion pay package is “insane” compared to the hundreds of millions or billions earned by other CEOs, they’re missing the point. Elon doesn’t need Tesla to build his wealth — he could focus on SpaceX, xAI, or another of his companies and still generate massive returns. Elon wants money, but not because he is a materialistic individual, but because money is a means to helping him achieve his ambitious goals (Mars). His success at PayPal helped start SpaceX and Tesla. His success at Tesla and SpaceX helped start Neuralink, The Boring Company and xAI. And his success at these companies will help fund building a city of Mars, etc. The reality is a $100 billion or whatever pay package just wouldn't be a huge needle mover for him. SpaceX is well on its way to becoming a trillion dollar company. xAI likely as well. Tesla needed to create an incredibly ambitious performance based compensation plan that would both motivate Elon to continue to execute at Tesla for years to come, and to align shareholders interests with his. This new comp plan does exactly that. If Elon doesn't deliver, he doesn't get paid. If he does deliver, he gets paid, and shareholders reap historic benefits. It's a similar setup to the 2018 comp plan. It's a win-win in my opinion. Unlocking all 12 tranches will be extremely difficult, but if there’s one thing you don’t do, it’s bet against Elon. This is a great comp plan. The next 10 years at Tesla are going to be extremely exciting.