Slate Daily Feed Slate Money | What Do You Pay the Man Who Has Everything?
Sep 6, 2025
This week, the hosts dig into Tesla's jaw-dropping $1 trillion incentive for Elon Musk, questioning why the richest man needs such extravagance. They also dissect a recent antitrust ruling on Google, where the judge called it a monopoly yet avoided a breakup, prompting a discussion on the implications for tech competition. Additionally, they explore the world of litigation finance linked to Trump’s tariffs, illuminating the intricacies of recovering tariff refunds. It's a mix of finance, tech, and investor intrigue!
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Trillion-Dollar Pay Tied To Ambitious Targets
- Tesla's proposed $1 trillion stock award ties pay to extreme market-cap and EBITDA targets rather than current earnings.
- The package aims to keep Elon Musk motivated and maintain his controlling stake, despite seeming unreachable.
Pay Package Shifts Risk To Performance Milestones
- The award costs shareholders nothing unless Tesla dramatically increases in value.
- Shares only vest with large EBITDA and market-cap milestones and long service restrictions.
Founder Narrative Inflates Market Value
- A company's market value often reflects founder-driven narratives more than operational metrics.
- Boards may preserve charismatic CEOs because markets price firms as 'Elon meme stocks' rather than traditional carmakers.