SpaceX's board has approved a new "moonshot" pay package for CEO Elon Musk, reportedly tied to ambitious market capitalization milestones that could reach as high as $7.5 trillion. The development, initially reported by The Wall Street Journal, comes as SpaceX prepares for a potential public offering, raising questions about corporate governance and executive compensation. According to the tweet from The Wall Street Journal, "SpaceX’s board has already granted him its own "moonshot" pay package, people familiar with the matter say." citizenry
This compensation structure outlines goals for restricted stock payments to vest, including the establishment of a permanent human colony on Mars and the completion of non-Earth-based data centers capable of delivering 100 terawatts of compute per year. The package is designed to incentivize Musk to achieve these monumental objectives, mirroring a similar high-stakes, performance-based award he received from Tesla.
The impending SpaceX IPO is reportedly being structured around a dual-class share system, which would grant Musk and a select group of insiders super-voting shares. This arrangement would allow Musk to retain significant control over the rocket and artificial intelligence maker, even as the company goes public. Reports indicate that SpaceX's board will not require a majority of independent directors, a setup that corporate governance experts suggest could provide more flexibility for striking such substantial pay arrangements.
Concerns about board independence and shareholder oversight have previously surfaced regarding Musk's compensation at Tesla. A judge's 2024 ruling initially rescinded Musk's $56 billion Tesla pay package, citing a lack of board independence, though the award was later restored in December. This history underscores the ongoing debate surrounding the scale of executive compensation and the influence of powerful founders in their companies.
The new SpaceX package, alongside his existing Tesla incentive scheme, means Musk could be managing two parallel trillion-dollar incentive programs. Analysts suggest these "moonshot" packages aim to keep Musk focused on the long-term growth and ambitious projects of his ventures, despite his extensive involvement across multiple companies like xAI, The Boring Company, and Neuralink.
