It’s not as if the Tesla Corporation is going to hand Elon Musk a trillion dollar coin and wish him a good day, but the shareholders of the corporation have approved a compensation package that could, ultimately, pay Musk a trillion dollars. Does that mean he’ll perform 1000 times better than if he was paid a measly billion? Maybe. On the one hand, the shareholders, who are the owners of the corp, think so. On the other hand, can there ever be such a thing as too much, even if the shareholders approve?
At Tesla, based in the Austin, Texas, area, shareholders have largely bought into a winner-takes-all version of capitalism, agreeing by a wide margin to give Mr. Musk shares worth almost a trillion dollars if the company under his management achieves ambitious financial and operational goals over the next decade.
Notably, it’s not for a year, but over ten years. Also notably, it requires that Musk meet goals that seem almost impossible to meet. Then again, it would be foolish to count Musk out when it comes to reaching ridiculously improbable goals. That he’s accomplished what he’s accomplished thus far might have seemed ridiculous improbable a decade ago, yet here we are. Continue reading
