An executive’s pay packages are typically tied to review, profit, share price, or operational targets. But SpaceX apparently has something different in mind. According to a Bloomberg report and details from SpaceX’s IPO filing, Elon Musk‘s latest compensation plan includes a wild condition.
The company must establish a permanent human colony on Mars with at least 1 million inhabitants. However, this is only a part of the crazy deal.
What does the fine print say?
This is not a regular executive compensation plan with sales targets and operating margins doing all the heavy lifting. Musk’s award is tied directly to SpaceX delivering its most ambitious long-term mission. SpaceX’s board granted Musk 1 billion performance-based restricted Class B shares in January. The award is split into 15 equal tranches, and to unlock the full package, SpaceX needs to hit a $7.5 trillion market capitalization along with the million inhabitants.
The filing also shows just how much control Musk already has, with the report revealing 85.1% of SpaceX’s voting power ahead of a planned IPO next month. Meaning, he has deep control over the company’s AI, satellite, and launch strategy. Musk also increased his SpaceX stake last year by buying $1.4 billion worth of stock from current and former employees.
Mars isn’t the only target
Simplifying the corporate language, Musk’s payday is tied to SpaceX becoming one of the most valuable companies in history while also building infrastructure that currently sounds like it belongs in a future-history documentary, with the full award depending on the company proving that its wildest founding promise can become real.
Of course, none of this is guaranteed money. SpaceX still has to hit extraordinary valuation milestones, and the Mars colony target is so ambitious that it could remain out of reach for decades.
