November 10, 2025 • 14 mins
Last week, Tesla shareholders approved what could become the largest pay package in corporate history - a deal that could see CEO Elon Musk earn close to a trillion dollars over the next decade. The vote came after months of debate about whether the world's richest person deserves an even bigger payday. Today, we're breaking down what this deal actually means, how it works, and what Musk needs to achieve to get paid.
Hosts: Sam Koslowski and Billi FitzSimons
Producer: Orla Maher
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Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Already and this this is the.
Speaker 2 (00:02):
Daily This is the Daily ohs oh, now it makes sense.
Speaker 1 (00:14):
Good morning, and welcome to the Daily OS. It's Tuesday,
the eleventh of November. I'm Sam Kazlowski.
Speaker 2 (00:19):
I'm Billy fitz Simon's.
Speaker 1 (00:20):
Last week, Tesla shareholders approved what could become the largest
pay package in corporate history, a deal that could see
CEO Elon Musk earned close to a trillion dollars over
the next decade. The vote came after months of debate
about whether the world's richest person deserves an even bigger payday. Today,
we're going to break down what this deal actually means,
(00:42):
and how it works, and what Musk needs to achieve
to get this big check.
Speaker 2 (00:50):
So, Sam, let's start with the basics. So this was
a pay package deal that was approved by Tesla shareholders. Now,
when we say Tesla shareholders, it's a public company. So
do we mean everyone who has invested in Tesla via
the public stock market?
Speaker 1 (01:07):
Kind of yes. I mean when you buy Tesla's stock,
you become a shareholder and you own a tiny bit
of the company. The more shares you own, the more
voting power you have. But if anybody has bought shares
even in any company on the Australian stock market, you
get notices of these AGM meetings. Yes, and you can
technically go and cast a vote. You're entitled to a vote.
(01:28):
Now companies have super complicated constitutions and structures on whether
your vote will count. But yeah, essentially he got approval
from seventy five percent of Tesla's shareholders, which sounds impressive,
but there's a bit more to.
Speaker 2 (01:43):
It that is huge. Seventy five percent of shareholders saying yes,
you should get this trillion dollar pay package deal. I
know it's not exactly how it sounds, which will get
into yah, but the result of that meeting was them
approving it.
Speaker 1 (01:56):
Yeah. I mean, one technicality to note is that Elon
Muster owns fifteen percent and he could vote for himself,
so he could look after that fifteen percent pretty easily.
But still he won another sixty percent and there were
some big groups and hedge funds and even some government
funds that did reject the plan, but overwhelmingly it was approved.
(02:19):
You know, there was this amazing scene at the physical
AGM in Texas. Musk took to the stage. In Austin,
there was chanting of his name, there was the Tesla
robot next to him, and he told shareholders, what we're
about to embark upon is not merely a new chapter
of the future of Tesla, but a whole new book.
Speaker 2 (02:35):
Wow. Okay, let's get to the actual structure of the deal.
I think this is what everyone is wondering. Yeah, what
does a trillion dollar pay package actually look like? Because
to be clear, it is not a trillion dollars in cash.
Speaker 1 (02:49):
No, it is not a paycheck. So this is a
big misconception, even in the way that it's being reported.
It's easy to understand why you'd think that that's just
a deposit into his bank account. It's about him being
issued with shares, and the value of those shares would
be a trillion dollars.
Speaker 2 (03:06):
I think that's always an interesting thing to look at,
because when we talk about billionaires, it's not actually cash
in their bank account. It is the value of the
equity or the shares that they hold in companies. Usually.
Speaker 1 (03:20):
Yeah, I mean for a lot of billionaires, especially the
really really billionaire billionaires, they do probably have billions in cash,
but a lot of their wealth. Like if you look
at somebody like Mark Zuckerberg, a lot of his wealth
is calculated based on what Meta is worth, yes, and
then what that means that his slice of the pie
is worth. But essentially, I mean this is what Musk
(03:43):
has done for many years, is he gets paid in
stock and then over time he sells portions of that
stock and that's when he really takes the cash off
the table.
Speaker 2 (03:53):
And so this deal is him potentially being awarded more shares,
which the value of would be more than a trillion
dollars exactly.
Speaker 1 (04:00):
So he would receive up to four hundred and twenty
three million Tesla shares over the next ten years if
he hits certain targets and there's one target for every year.
Speaker 2 (04:11):
So this is interesting. So it's not the shareholder saying
he's a trillion dollars worth of shares in Tesla. It
is them saying, if you hit these certain targets. KPIs
if you will, that is when you will get this.
Speaker 1 (04:23):
Deal, exactly, And they are aggressive targets about that. The
biggest target is growing Tesla's market cap and I'll explain
that in a minute, from its current valuation of one
point four trillion dollars to eight point five trillion dollars
over ten years.
Speaker 2 (04:40):
So they're wanting to aggressively grow the company.
Speaker 1 (04:42):
Yeah.
Speaker 2 (04:42):
And so you said market cap before, what is that?
Speaker 1 (04:45):
So that's the total value of the entire company as
determined by the stock market. So if you buy shares
in a company, and you buy a share for twenty
dollars and there are one hundred shares on offer to
the entire market, the market cap is two thousand dollars.
So it's kind of just number of shares times share
price equals market cap. And so when we say that
(05:06):
Musk needs to grow Tesla to a market cap of
eight point five trillion dollars, we mean that in ten
years time, the value of all Tesla shares needs to
reach that level. That is massive. It would make Tesla
worth more than any company has ever been worth in history.
Speaker 2 (05:23):
I was going to ask that. Yeah, so if there
any company that is worth that much.
Speaker 1 (05:26):
Money, Well, Navidia is worth five trillion dollars and that
has made headlines over the last twelve months for setting
new records.
Speaker 2 (05:33):
For anyone who hasn't heard of Navidia, it is the
largest company in the world.
Speaker 1 (05:36):
Yeah, So then make the AI chips that ironically go
into Tesla cars to make it smart as a car.
But Mask would need to make Tesla worth seventy percent
more than what Navidia is worth now over the next decade.
It's an unbelievable target. But he has done this before.
So back in twenty eighteen, shareholders approved a kind of
similar package, a bit scaled down obviously because it was still,
(05:59):
you know, a different time in Tesla's history, but they
required him to grow Tesla's value by ten over I
think it was a five or six year period, and
he did it ahead of schedule. So he knows he
can do this kind of thing. This is another stratosphere,
but he's got form, and.
Speaker 2 (06:15):
So I imagine there are installments to this. It's not
just at the end of the ten years they'll decide
whether or not he gets it. Yeah, there would be
installments along the.
Speaker 1 (06:23):
Way exactly, So it's evenly split over the next ten years.
For every time he hits a goal after twelve months,
he gets one percent, so he works his way up.
The goals are not just about that market cap number.
There are also goals about what Tesla is delivering. So,
for example, Tesla needs to deliver twenty million Tesla vehicles
(06:44):
for him to hit one of the hurdles. They need
to bring one million self driving robotaxis into commercial service.
They need to sell ten million subscriptions to their full
self driving features. So anyone with a Tesla over the
next ten years at some point going to release a
feature that says you can make your Tesla a self
driving car if it's obviously permitted by law where you are.
(07:07):
And then the craziest one, I think is that he
needs to sell one million humanoid robots. So these are
these new robot products from Tesla that look like a
kind of six foot human being I have seen and
can I don't know, clean your house and do things.
So really ambitious numbers there, and I guess if you
look at it from a Tesla shareholder perspective, if he
(07:29):
can do all of that and reach this unbelievable eight
trillion dollar valuation, then arguably he probably deserves that sort
of reward.
Speaker 2 (07:38):
I mean, does anyone deserve a trillion dollar reward? I
don't know about that.
Speaker 1 (07:42):
Well, that's been really interesting in reading about how the
world has reacted to this, because it's kind of hard
to understand what that even looks like.
Speaker 2 (07:49):
I guess the argument from the shareholder's perspective would be
if this is achieved for Tesla, it's not only Elon
Musk who is benefiting. It is also the shares that
all of those shareholders have in the company.
Speaker 1 (08:00):
Exactly.
Speaker 2 (08:01):
But I think we need a pause because a trillion dollars.
I know that it can't just be me who is
so confused about what that actually looks like. I find
it hard to wrap my head around that number. How
do we put a trillion dollars into perspective?
Speaker 1 (08:18):
So I want you to picture that you're in a
helicopter looking down at a football field.
Speaker 2 (08:23):
Beautiful.
Speaker 1 (08:24):
So a billion dollars is a thousand piles of one
million dollars.
Speaker 2 (08:29):
That's a billion dollars.
Speaker 1 (08:30):
That's a billion. Yeah. A trillion dollars is a thousand
piles of one billion dollars.
Speaker 2 (08:38):
So a trillion is one thousand billions.
Speaker 1 (08:41):
Yes, So if you earned one million dollars every day,
which is wild, it would take you nearly two thousand,
seven hundred and forty years to earn a trillion dollars.
Speaker 2 (08:52):
Wow.
Speaker 1 (08:52):
Yeah. So Musk's current net worth is about four hundred
and sixty billion, which makes him the world's richest person.
This pay package could potentially more than double that. And
to put it another way, the average Tesla worker earned
about fifty seven thousand US dollars in twenty twenty four,
So that's about eleven hundred dollars a week. If Musk
gets the full trillion dollar payout after ten years, that's
(09:15):
the equivalent of earning about one point nine billion dollars
in stock every week until then.
Speaker 2 (09:20):
My mind, I'm still trying to fully comprehend it.
Speaker 1 (09:25):
Well, there's some really interesting analysis from economists that I've
read that basically said, over the weekend, it's physically impossible
to make use of that much money. Yes, like, it doesn't.
The world is not set up for trillionaires to be
able to do anything useful with that money beyond well.
Speaker 2 (09:41):
Except for maybe redistributing that wealth.
Speaker 1 (09:44):
Well yes, okay, don't try that. If they were trying
to spend it all themselves, I mean they could, he
could buy other companies, and that's kind of one way
to do it. But in terms of you're right, like,
unless he gives out a little pay package to every
single person, and he'd still be left with hundreds of billions,
it's very, very hard to actually make use of that
money with things like property or possessions or you know,
(10:06):
even investments to some extent.
Speaker 2 (10:08):
Now, I remember talking about Elon Musk a few months
ago when there was a legal battle over his pay
at Tesla.
Speaker 1 (10:16):
Yeah, is that right? Yeah, there was this big legal
battle over a fifty six billion dollar package that was
put in front of shareholders and a Delaware judge. So
the company used to be registered in Delaware, and a
Delaware judge ruled that Tesla's board members were too close
personally too Musk, and there was a conflict of interest
and that the approval process for this package was flawed.
(10:40):
Tesla appealed that decision, but in the meantime, the company
actually moved its legal headquarters from Delaware to Texas, where
that sort of law isn't applicable. And this new package
essentially replaces that old one that got blocked, and there's
not much that the Texas legal system can do to
regulate it.
Speaker 2 (10:58):
Right, So that is mostly done and dusted that legal bag.
Speaker 1 (11:02):
Yeah, this is this is now approved, This is in
place now for the next decade.
Speaker 2 (11:05):
Wow. Okay, And so what's been the response from analysts
and also corporate governance experts.
Speaker 1 (11:11):
Well, the reason why corporate governance. The corporate governance is
basically the idea of how to govern a company. So
what's fair, what's not? What should a shareholder like you
and I if we had one hundred dollars worth of
Tesla stocks, what are our rights in this sort of
thing happening? And it's been pretty divided. So supporters argue,
as you said before, that if Musk can do all
(11:32):
of this, then everybody will benefit. Everyone will get a
lot richer if they own Tesla stocks, and he should
benefit as well. But then there are some critics and
some look at it from the point of view of
who owns money in the world, and money equals power,
And I mean one example is the New York State
Controller who collects taxes. They said, it's not pay for performance,
(11:55):
it's pay for unchecked power. So at that level of wealth,
there's nothing that could really stop this man.
Speaker 2 (12:00):
Okay, that's interesting. Can you explain that a little bit?
Speaker 1 (12:02):
More so, what the authorities are saying there is that
this package, when you consider how much political power Musk has,
could present a real risk to the American people because
you know, nothing would stop him from creating his own
militia or you know, the level of wealth that we're
talking about here is not like other discussions we can
(12:23):
have about political candidates. For example, he could buy every
single ad on TV in the six months leading up
to an election and not notice that money leaving his account.
So it's come from the perspective of do we have
systems set up to actually kind of moderate what that
sort of wealth.
Speaker 2 (12:41):
Could do I see, And what's the answer.
Speaker 1 (12:43):
We don't, I mean, especially in America, and it's not
just Americans, I mean Pope Leo weighed in. He said
that Musk's compensation is a symptom of growing disparity between
working people and the wealthy. And against all of this, though,
is other critics who say that Tesla aren't going to
hit these goals. Tesla have had a really rough year
(13:04):
two years. There's declining sales figures because there's more competition
from Chinese ev manufacturers. But there's also a lot of
people who are not buying Tesla's now out of protest
for Musk's political involvement. He was part of DOGE, the
Department of Government Efficiency, and they kind of a lot
of Tesla consumers now see him as a kind of
(13:25):
Trump esque member of the American political scene that they
don't want anything to.
Speaker 2 (13:30):
Do with such an interesting conversation. That with this pay
package approved, there is the context of all of these
issues going on in the background, and it will be
fascinating to see if this trillion dollar pay package does eventuate.
The world has certainly never seen anything like it before, no,
so it will be a very interesting one to keep
our eyes on.
Speaker 1 (13:50):
And we've got ten years to watch it all go down.
Speaker 2 (13:52):
I'll see you that well.
Speaker 1 (13:53):
That will be a beautiful annual episode.
Speaker 2 (13:56):
Thank you for explaining about Sam. Thanks and thank you
so much for listen looking to this episode of The
Daily Ods. We will be back this afternoon with your
evening headlines, but until then, have a great day. My
name is Lily Maddon and I'm a proud Arunda Bungelung
Kalkadin woman from Gadighl country. The Daily oz acknowledges that
(14:17):
this podcast is recorded on the lands of the Gadighl
people and pays respect to all Aboriginal and torrest Rate
island and nations. We pay our respects to the first
peoples of these countries, both past and present,
Already and this this is the.
Speaker 2 (00:02):
Daily This is the Daily ohs oh, now it makes sense.
Speaker 1 (00:14):
Good morning, and welcome to the Daily OS. It's Tuesday,
the eleventh of November. I'm Sam Kazlowski.
Speaker 2 (00:19):
I'm Billy fitz Simon's.
Speaker 1 (00:20):
Last week, Tesla shareholders approved what could become the largest
pay package in corporate history, a deal that could see
CEO Elon Musk earned close to a trillion dollars over
the next decade. The vote came after months of debate
about whether the world's richest person deserves an even bigger payday. Today,
we're going to break down what this deal actually means,
(00:42):
and how it works, and what Musk needs to achieve
to get this big check.
Speaker 2 (00:50):
So, Sam, let's start with the basics. So this was
a pay package deal that was approved by Tesla shareholders. Now,
when we say Tesla shareholders, it's a public company. So
do we mean everyone who has invested in Tesla via
the public stock market?
Speaker 1 (01:07):
Kind of yes. I mean when you buy Tesla's stock,
you become a shareholder and you own a tiny bit
of the company. The more shares you own, the more
voting power you have. But if anybody has bought shares
even in any company on the Australian stock market, you
get notices of these AGM meetings. Yes, and you can
technically go and cast a vote. You're entitled to a vote.
(01:28):
Now companies have super complicated constitutions and structures on whether
your vote will count. But yeah, essentially he got approval
from seventy five percent of Tesla's shareholders, which sounds impressive,
but there's a bit more to.
Speaker 2 (01:43):
It that is huge. Seventy five percent of shareholders saying yes,
you should get this trillion dollar pay package deal. I
know it's not exactly how it sounds, which will get
into yah, but the result of that meeting was them
approving it.
Speaker 1 (01:56):
Yeah. I mean, one technicality to note is that Elon
Muster owns fifteen percent and he could vote for himself,
so he could look after that fifteen percent pretty easily.
But still he won another sixty percent and there were
some big groups and hedge funds and even some government
funds that did reject the plan, but overwhelmingly it was approved.
(02:19):
You know, there was this amazing scene at the physical
AGM in Texas. Musk took to the stage. In Austin,
there was chanting of his name, there was the Tesla
robot next to him, and he told shareholders, what we're
about to embark upon is not merely a new chapter
of the future of Tesla, but a whole new book.
Speaker 2 (02:35):
Wow. Okay, let's get to the actual structure of the deal.
I think this is what everyone is wondering. Yeah, what
does a trillion dollar pay package actually look like? Because
to be clear, it is not a trillion dollars in cash.
Speaker 1 (02:49):
No, it is not a paycheck. So this is a
big misconception, even in the way that it's being reported.
It's easy to understand why you'd think that that's just
a deposit into his bank account. It's about him being
issued with shares, and the value of those shares would
be a trillion dollars.
Speaker 2 (03:06):
I think that's always an interesting thing to look at,
because when we talk about billionaires, it's not actually cash
in their bank account. It is the value of the
equity or the shares that they hold in companies. Usually.
Speaker 1 (03:20):
Yeah, I mean for a lot of billionaires, especially the
really really billionaire billionaires, they do probably have billions in cash,
but a lot of their wealth. Like if you look
at somebody like Mark Zuckerberg, a lot of his wealth
is calculated based on what Meta is worth, yes, and
then what that means that his slice of the pie
is worth. But essentially, I mean this is what Musk
(03:43):
has done for many years, is he gets paid in
stock and then over time he sells portions of that
stock and that's when he really takes the cash off
the table.
Speaker 2 (03:53):
And so this deal is him potentially being awarded more shares,
which the value of would be more than a trillion
dollars exactly.
Speaker 1 (04:00):
So he would receive up to four hundred and twenty
three million Tesla shares over the next ten years if
he hits certain targets and there's one target for every year.
Speaker 2 (04:11):
So this is interesting. So it's not the shareholder saying
he's a trillion dollars worth of shares in Tesla. It
is them saying, if you hit these certain targets. KPIs
if you will, that is when you will get this.
Speaker 1 (04:23):
Deal, exactly, And they are aggressive targets about that. The
biggest target is growing Tesla's market cap and I'll explain
that in a minute, from its current valuation of one
point four trillion dollars to eight point five trillion dollars
over ten years.
Speaker 2 (04:40):
So they're wanting to aggressively grow the company.
Speaker 1 (04:42):
Yeah.
Speaker 2 (04:42):
And so you said market cap before, what is that?
Speaker 1 (04:45):
So that's the total value of the entire company as
determined by the stock market. So if you buy shares
in a company, and you buy a share for twenty
dollars and there are one hundred shares on offer to
the entire market, the market cap is two thousand dollars.
So it's kind of just number of shares times share
price equals market cap. And so when we say that
(05:06):
Musk needs to grow Tesla to a market cap of
eight point five trillion dollars, we mean that in ten
years time, the value of all Tesla shares needs to
reach that level. That is massive. It would make Tesla
worth more than any company has ever been worth in history.
Speaker 2 (05:23):
I was going to ask that. Yeah, so if there
any company that is worth that much.
Speaker 1 (05:26):
Money, Well, Navidia is worth five trillion dollars and that
has made headlines over the last twelve months for setting
new records.
Speaker 2 (05:33):
For anyone who hasn't heard of Navidia, it is the
largest company in the world.
Speaker 1 (05:36):
Yeah, So then make the AI chips that ironically go
into Tesla cars to make it smart as a car.
But Mask would need to make Tesla worth seventy percent
more than what Navidia is worth now over the next decade.
It's an unbelievable target. But he has done this before.
So back in twenty eighteen, shareholders approved a kind of
similar package, a bit scaled down obviously because it was still,
(05:59):
you know, a different time in Tesla's history, but they
required him to grow Tesla's value by ten over I
think it was a five or six year period, and
he did it ahead of schedule. So he knows he
can do this kind of thing. This is another stratosphere,
but he's got form, and.
Speaker 2 (06:15):
So I imagine there are installments to this. It's not
just at the end of the ten years they'll decide
whether or not he gets it. Yeah, there would be
installments along the.
Speaker 1 (06:23):
Way exactly, So it's evenly split over the next ten years.
For every time he hits a goal after twelve months,
he gets one percent, so he works his way up.
The goals are not just about that market cap number.
There are also goals about what Tesla is delivering. So,
for example, Tesla needs to deliver twenty million Tesla vehicles
(06:44):
for him to hit one of the hurdles. They need
to bring one million self driving robotaxis into commercial service.
They need to sell ten million subscriptions to their full
self driving features. So anyone with a Tesla over the
next ten years at some point going to release a
feature that says you can make your Tesla a self
driving car if it's obviously permitted by law where you are.
(07:07):
And then the craziest one, I think is that he
needs to sell one million humanoid robots. So these are
these new robot products from Tesla that look like a
kind of six foot human being I have seen and
can I don't know, clean your house and do things.
So really ambitious numbers there, and I guess if you
look at it from a Tesla shareholder perspective, if he
(07:29):
can do all of that and reach this unbelievable eight
trillion dollar valuation, then arguably he probably deserves that sort
of reward.
Speaker 2 (07:38):
I mean, does anyone deserve a trillion dollar reward? I
don't know about that.
Speaker 1 (07:42):
Well, that's been really interesting in reading about how the
world has reacted to this, because it's kind of hard
to understand what that even looks like.
Speaker 2 (07:49):
I guess the argument from the shareholder's perspective would be
if this is achieved for Tesla, it's not only Elon
Musk who is benefiting. It is also the shares that
all of those shareholders have in the company.
Speaker 1 (08:00):
Exactly.
Speaker 2 (08:01):
But I think we need a pause because a trillion dollars.
I know that it can't just be me who is
so confused about what that actually looks like. I find
it hard to wrap my head around that number. How
do we put a trillion dollars into perspective?
Speaker 1 (08:18):
So I want you to picture that you're in a
helicopter looking down at a football field.
Speaker 2 (08:23):
Beautiful.
Speaker 1 (08:24):
So a billion dollars is a thousand piles of one
million dollars.
Speaker 2 (08:29):
That's a billion dollars.
Speaker 1 (08:30):
That's a billion. Yeah. A trillion dollars is a thousand
piles of one billion dollars.
Speaker 2 (08:38):
So a trillion is one thousand billions.
Speaker 1 (08:41):
Yes, So if you earned one million dollars every day,
which is wild, it would take you nearly two thousand,
seven hundred and forty years to earn a trillion dollars.
Speaker 2 (08:52):
Wow.
Speaker 1 (08:52):
Yeah. So Musk's current net worth is about four hundred
and sixty billion, which makes him the world's richest person.
This pay package could potentially more than double that. And
to put it another way, the average Tesla worker earned
about fifty seven thousand US dollars in twenty twenty four,
So that's about eleven hundred dollars a week. If Musk
gets the full trillion dollar payout after ten years, that's
(09:15):
the equivalent of earning about one point nine billion dollars
in stock every week until then.
Speaker 2 (09:20):
My mind, I'm still trying to fully comprehend it.
Speaker 1 (09:25):
Well, there's some really interesting analysis from economists that I've
read that basically said, over the weekend, it's physically impossible
to make use of that much money. Yes, like, it doesn't.
The world is not set up for trillionaires to be
able to do anything useful with that money beyond well.
Speaker 2 (09:41):
Except for maybe redistributing that wealth.
Speaker 1 (09:44):
Well yes, okay, don't try that. If they were trying
to spend it all themselves, I mean they could, he
could buy other companies, and that's kind of one way
to do it. But in terms of you're right, like,
unless he gives out a little pay package to every
single person, and he'd still be left with hundreds of billions,
it's very, very hard to actually make use of that
money with things like property or possessions or you know,
(10:06):
even investments to some extent.
Speaker 2 (10:08):
Now, I remember talking about Elon Musk a few months
ago when there was a legal battle over his pay
at Tesla.
Speaker 1 (10:16):
Yeah, is that right? Yeah, there was this big legal
battle over a fifty six billion dollar package that was
put in front of shareholders and a Delaware judge. So
the company used to be registered in Delaware, and a
Delaware judge ruled that Tesla's board members were too close
personally too Musk, and there was a conflict of interest
and that the approval process for this package was flawed.
(10:40):
Tesla appealed that decision, but in the meantime, the company
actually moved its legal headquarters from Delaware to Texas, where
that sort of law isn't applicable. And this new package
essentially replaces that old one that got blocked, and there's
not much that the Texas legal system can do to
regulate it.
Speaker 2 (10:58):
Right, So that is mostly done and dusted that legal bag.
Speaker 1 (11:02):
Yeah, this is this is now approved, This is in
place now for the next decade.
Speaker 2 (11:05):
Wow. Okay, And so what's been the response from analysts
and also corporate governance experts.
Speaker 1 (11:11):
Well, the reason why corporate governance. The corporate governance is
basically the idea of how to govern a company. So
what's fair, what's not? What should a shareholder like you
and I if we had one hundred dollars worth of
Tesla stocks, what are our rights in this sort of
thing happening? And it's been pretty divided. So supporters argue,
as you said before, that if Musk can do all
(11:32):
of this, then everybody will benefit. Everyone will get a
lot richer if they own Tesla stocks, and he should
benefit as well. But then there are some critics and
some look at it from the point of view of
who owns money in the world, and money equals power,
And I mean one example is the New York State
Controller who collects taxes. They said, it's not pay for performance,
(11:55):
it's pay for unchecked power. So at that level of wealth,
there's nothing that could really stop this man.
Speaker 2 (12:00):
Okay, that's interesting. Can you explain that a little bit?
Speaker 1 (12:02):
More so, what the authorities are saying there is that
this package, when you consider how much political power Musk has,
could present a real risk to the American people because
you know, nothing would stop him from creating his own
militia or you know, the level of wealth that we're
talking about here is not like other discussions we can
(12:23):
have about political candidates. For example, he could buy every
single ad on TV in the six months leading up
to an election and not notice that money leaving his account.
So it's come from the perspective of do we have
systems set up to actually kind of moderate what that
sort of wealth.
Speaker 2 (12:41):
Could do I see, And what's the answer.
Speaker 1 (12:43):
We don't, I mean, especially in America, and it's not
just Americans, I mean Pope Leo weighed in. He said
that Musk's compensation is a symptom of growing disparity between
working people and the wealthy. And against all of this, though,
is other critics who say that Tesla aren't going to
hit these goals. Tesla have had a really rough year
(13:04):
two years. There's declining sales figures because there's more competition
from Chinese ev manufacturers. But there's also a lot of
people who are not buying Tesla's now out of protest
for Musk's political involvement. He was part of DOGE, the
Department of Government Efficiency, and they kind of a lot
of Tesla consumers now see him as a kind of
(13:25):
Trump esque member of the American political scene that they
don't want anything to.
Speaker 2 (13:30):
Do with such an interesting conversation. That with this pay
package approved, there is the context of all of these
issues going on in the background, and it will be
fascinating to see if this trillion dollar pay package does eventuate.
The world has certainly never seen anything like it before, no,
so it will be a very interesting one to keep
our eyes on.
Speaker 1 (13:50):
And we've got ten years to watch it all go down.
Speaker 2 (13:52):
I'll see you that well.
Speaker 1 (13:53):
That will be a beautiful annual episode.
Speaker 2 (13:56):
Thank you for explaining about Sam. Thanks and thank you
so much for listen looking to this episode of The
Daily Ods. We will be back this afternoon with your
evening headlines, but until then, have a great day. My
name is Lily Maddon and I'm a proud Arunda Bungelung
Kalkadin woman from Gadighl country. The Daily oz acknowledges that
(14:17):
this podcast is recorded on the lands of the Gadighl
people and pays respect to all Aboriginal and torrest Rate
island and nations. We pay our respects to the first
peoples of these countries, both past and present,
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