Elon Musk will receive a record-breaking salary if he establishes a colony of one million people on Mars.
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SpaceX could provide Musk with a historic financial reward if Mars becomes a thriving city.
An executive's compensation packages are generally linked to performance reviews, profits, share prices, or operational goals. However, SpaceX appears to have a different strategy. As reported by Bloomberg and revealed in SpaceX’s IPO filing, Elon Musk's latest compensation plan features an extraordinary stipulation.
The company must create a permanent human settlement on Mars, populated by at least 1 million people. This requirement is just one aspect of this remarkable deal.
What are the details?
This is not an ordinary executive compensation plan relying on sales and operational metrics. Musk's reward is directly linked to SpaceX accomplishing its most ambitious long-term objective. In January, SpaceX's board awarded Musk 1 billion performance-based restricted Class B shares, divided into 15 equal segments. To access the entire package, SpaceX must achieve a $7.5 trillion market capitalization along with the settlement of one million inhabitants.
The filing also demonstrates the significant control Musk exerts, with reports indicating he holds 85.1% of SpaceX's voting power ahead of the planned IPO next month. This means he has considerable influence over the company’s AI, satellite, and launch strategies. Last year, Musk also increased his ownership in SpaceX by purchasing $1.4 billion worth of shares from current and former employees.
Mars is not the only focus
In simpler terms, Musk’s financial reward is linked to SpaceX becoming one of the most valuable companies in history while also building infrastructure that sounds like it belongs in a futuristic documentary, with the complete reward depending on the company demonstrating that its most ambitious founding vision can come to fruition.
However, none of this is guaranteed income. SpaceX must still achieve exceptional valuation milestones, and the goal of establishing a Mars colony is so ambitious that it may remain unattainable for decades.
Vikhyaat Vivek is a tech journalist and reviewer with seven years of experience covering consumer hardware, focusing on…
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Elon Musk will receive a record-breaking salary if he establishes a colony of one million people on Mars.
Elon Musk’s compensation plan for SpaceX could lead to a substantial stock grant if the company achieves a significant valuation and establishes a colony on Mars with one million inhabitants.