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Does anyone on the face of the earth earn more than him? Elon Musk will have a salary of US$56 billion and is ahead of Mark Zuckerberg, the owner of Facebook

Written by Roberta Souza
Published 18/06/2024 às 21:55
elon musk, musk, tesla
Photo: reproduction adapted from Google Images

Tesla CEO Set to Receive One of Biggest Pay Packages in History as Company Moves Headquarters to Texas

Shareholders of electric vehicle maker Tesla approved a monumental $56 billion salary package for Elon Musk, CEO of the company. This astronomical value has been the subject of discussion and controversy for years. The first approval of the package took place in 2018, conditioned on meeting performance targets extremely ambitious, both in terms of Tesla's market value and specific financial objectives, according to the website Exame.

Salary package structure

Since 2019, Elon Musk has not received a traditional annual salary from Tesla. Instead, he is rewarded with large amounts of shares upon reaching each of the set goals. For every $50 billion increase in Tesla's market capitalization, Musk could gain a significant amount of shares, potentially totaling up to $56 billion if all targets are met.

Fernando Canutto, partner at Godke Advogados and specialist in business law, explains that this practice is common among bilionaires in the US, where compensation is linked to company performance rather than a fixed monthly salary.

Image: reproduction google images / Melhorinvestimento.net

Growth of Elon Musk's fortune

Between 2019 and 2022, Elon Musk began to reap the rewards of this compensation package. As Tesla reached its milestones, Musk acquired significant tranches of stock options, whose value increased substantially due to the appreciation of the company's shares. This resulted in a notable increase in his net wealth, although he still did not receive a traditional salary.

As of 2023, Elon Musk's compensation structure has remained the same, with the majority of his compensation derived from stock options. International researcher Joaquim Santini claims that Elon Musk's net worth has reached an impressive US$220 billion, strongly influenced by the performance of Tesla's shares.

Comparison with other CEOs

Compared to others executives of large companies, Musk is way ahead. See how much the CEOs of some of the biggest companies in the world earn, on average:

  • Tim Cook (Apple): US$3 million (up to US$49 million with bonuses, shares and other incentives).
  • Satya Nadella (Microsoft): US$2,5 million (up to US$48,5 million).
  • Jensen Huang (NVidia): US$ 1,25 million (up to US$ 21,3 million).
  • Sundar Pichai (Alphabet/Google): US$2 million (could reach US$280,6 million, mainly due to a large share package).
  • Mark Zuckerberg (Meta): Salary of US$1, with gains coming from shares totaling around 350 million.

Like Elon Musk, Zuckerberg adopts the practice of a symbolic salary, common among high-profile executives who own substantial amounts of shares in the company they lead.

Legal controversy and move to Texas

The approval of Musk's pay package was recently invalidated by a Delaware court. Judge Kathaleen McCormick ruled that Tesla and Musk failed to prove that the billionaire payment would be fair, highlighting Musk's influence on the company's board of directors. According to McCormick, the board did not act independently, configuring a conflict of interest.

Faced with the unfavorable court decision, Musk announced the move of Tesla's headquarters to Texas, where he has more allies. A company confirmed the decision on its social network, thanking shareholders for their engagement and feedback in recent months.

Market impact

Tesla's move to Texas could bring strategic benefits to the company, which seeks to continue its expansion and innovation in the electric vehicle market. Musk's new salary package, if approved by the courts, will further consolidate his position as one of the highest paid executives in the world.

With all these changes, Tesla and Elon Musk continue to shape the future of electric mobility and significantly influence the global car market.

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Roberta Souza

Petroleum Engineer, postgraduate in Commissioning of Industrial Units, specialist in Industrial Corrosion. Get in touch to suggest an agenda, advertise job vacancies or advertise on our portal. We do not receive resumes

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