Despite being one of the most influential figures in the tech and automotive industries, Elon Musk received zero salary from Tesla in 2024, making him the lowest-paid CEO among S&P 500 companies. As reported by the Wall Street Journal, Musk’s compensation structure has been a subject of debate for years. His 2018 pay package, which was designed to grant him stock options based on Tesla’s performance milestones, was twice struck down in court, leaving him without formal compensation. While Tesla’s valuation has skyrocketed—growing over 2,000% in the past seven years—Musk has not received a paycheck during this period.
The 2018 performance-based package of Tesla CEO Elon MusAs mentioned above, Elon Musk’s salary package was approved by Tesla shareholders in 2018. As part of the agreement his entire compensation was tied to the company’s overall performance and market capitalisation milestones.
Under this structure, Musk was granted stock options that would vest only if Tesla hit specific, escalating targets for market capitalisation, revenue, and adjusted EBITDA. Over the years, as Tesla's valuation soared and it met many of these goals, the package became immensely valuable, potentially making it the largest compensation deal in corporate history.
Why Tesla has not paid Elon MuskThe legal battle over Musk’s $56 billion stock award has prevented Tesla from issuing him compensation. Courts have ruled that the approval process for his pay package was flawed, leading to its rejection despite shareholder support.
Musk himself has acknowledged the situation, stating that he has worked without pay for years. However, with Tesla facing market volatility and leadership concerns, some experts argue that it may be time to restructure his compensation to ensure stability and long-term commitment.
What’s next for Elon Musk’s pay?Tesla’s board is now weighing options for a new compensation plan. Some analysts suggest a performance-based stock package, while others argue Musk should receive a traditional CEO salary to align with industry standards.
The 2018 performance-based package of Tesla CEO Elon MusAs mentioned above, Elon Musk’s salary package was approved by Tesla shareholders in 2018. As part of the agreement his entire compensation was tied to the company’s overall performance and market capitalisation milestones.
Under this structure, Musk was granted stock options that would vest only if Tesla hit specific, escalating targets for market capitalisation, revenue, and adjusted EBITDA. Over the years, as Tesla's valuation soared and it met many of these goals, the package became immensely valuable, potentially making it the largest compensation deal in corporate history.
Why Tesla has not paid Elon MuskThe legal battle over Musk’s $56 billion stock award has prevented Tesla from issuing him compensation. Courts have ruled that the approval process for his pay package was flawed, leading to its rejection despite shareholder support.
Musk himself has acknowledged the situation, stating that he has worked without pay for years. However, with Tesla facing market volatility and leadership concerns, some experts argue that it may be time to restructure his compensation to ensure stability and long-term commitment.
What’s next for Elon Musk’s pay?Tesla’s board is now weighing options for a new compensation plan. Some analysts suggest a performance-based stock package, while others argue Musk should receive a traditional CEO salary to align with industry standards.
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