I Voted for Musk’s $56 Billion Pay Package, and He Deserves Every Penny of It

He has delivered outsized performance and created wealth for shareholders, so he deserves this outsized pay package. That's how capitalism works.

Photo by Andreas Rasmussen on Unsplash

I am a proud owner of Tesla, not the car, but some shares. I, along with a multitude of other shareholders, made a significant decision this week. We collectively awarded Elon Musk a $56 billion pay package. This decision, which was not made lightly, is a resounding testament to our shared belief that Musk has earned every penny of this package.

Let’s walk down memory lane so we can all be on the same page.

Back in January 2018,  Tesla announced a 10-year performance award for Musk. This 100% at-risk performance award means that Musk would “receive no guaranteed compensation of any kind - no salary, no cash bonuses, and no equity that vests simply by the passage of time.” His only compensation will be a 10-year stock option grant vesting in 12 tranches. Each of the 12 tranches vests only if a pair of milestones are both met. This shows Musk’s dedication and the risk he is willing to take for the company’s success.