Planet Money Why is everyone talking about Musk's money?
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Jun 19, 2024 Elon Musk's journey from near-bankruptcy to becoming the richest person on Earth is a captivating tale. The controversy over his record-setting compensation package sparked a corporate battle that feels like a plot from a drama series. The podcast dives into the complexities of executive pay, governance, and the implications for modern capitalism. It also revisits Tesla's pivotal moments, like the launch of the affordable Model 3, while exploring how Musk's persona shapes corporate dynamics and influences societal power.
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Tesla's Production Hell
- In 2017, Tesla struggled with Model 3 production, facing potential bankruptcy.
- Elon Musk slept at the factory, highlighting the intense pressure and his hands-on approach.
Moonshot Compensation
- CEO compensation often involves stock options, aligning their interests with shareholder performance.
- Tesla's board proposed a unique 'moonshot' plan for Musk, tying massive stock options to ambitious performance goals.
Initial Shareholder Support
- The moonshot plan required a 1,000% increase in Tesla's value, initially deemed unlikely.
- Shareholder Joshua Walters voted in favor, seeing it as a win-win if the targets were met.