Elon Musk was the lowest-paid S&P 500 CEO in 2024. Tesla gave him $0: Report

Elon Musk was the lowest-paid S&P 500 CEO in 2024. Tesla gave him $0: Report

  • 03.06.2025 03:58
  • msn.com
  • Keywords: Social media reacts, How to calculate the salary of world’s richest man?, #1: “Simple payment structure”, #2: “A CEO’s salary”},{

Elon Musk was the lowest-paid S&P 500 CEO in 2024, receiving $0 from Tesla as his salary. This is due to a legal dispute over a 2018 stock award, which has been denied by the court.

Tesla ReportsAlphabet ReportsTSLAsentiment_dissatisfiedAXONsentiment_satisfiedMETAsentiment_neutralAMZNsentiment_neutralGOOGLsentiment_neutral
open_in_newOriginal article

Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Elon Musk received $0 in salary from Tesla despite increasing the company's value by over 2000%. The court denied Musk’s pay package twice due to flaws in the process of creating it. Tesla did not respond to WSJ's request about Musk’s salary.

Johnson Associates

Negativesentiment_dissatisfied
Analyst rating: N/A

Alan Johnson, managing director of Johnson Associates, suggested that Tesla should firmly tell Musk to 'show up' and create value. He criticized Musk for paying more attention to DOGE than the company.

Farient Advisors

Negativesentiment_dissatisfied
Analyst rating: N/A

Robin Ferracone, founder of Farient Advisors, suggested that Tesla should set Musk’s pay like other CEOs and compare it to the salaries of his counterparts such as Meta CEO Mark Zuckerberg, Amazon.com founder Jeff Bezos, and Alphabet CEO Sundar Pichai.

Axon

Axon

Positivesentiment_satisfied
Analyst rating: Buy

Rick Smith, the top-paid CEO of 2024 at Axon, discussed a package tied to share price and financial measures. He received a $165 million stock award from Axon last year.

Meta

Meta

Neutralsentiment_neutral
Analyst rating: Strong buy

Mark Zuckerberg, CEO of Meta, was paid $27 million last year.

Amazon

Amazon

Neutralsentiment_neutral
Analyst rating: Strong buy

Jeff Bezos, founder of Amazon.com.

Alphabet

Alphabet

Neutralsentiment_neutral
Analyst rating: Strong buy

Sundar Pichai, CEO of Alphabet.

Context

Analysis and Summary of Elon Musk's Salary Situation at Tesla

Key Facts and Data Points:

  • Elon Musk received $0 in salary from Tesla for the past seven years, as reported by the Wall Street Journal.
  • Musk claims he has not received any salary since 2017, despite increasing Tesla's value by over 2000%.
  • The situation stems from an ongoing legal dispute over a $5.8 billion stock award granted in 2018, which has been denied by courts twice due to flawed processes.
  • Social media reactions highlight mixed views on Musk's decision, with some praising his financial prudence and others questioning the practicality of not receiving a salary.

Market Implications:

  • Executive Compensation Trends: The incident reflects a growing trend of founder-CEOs taking significant equity stakes instead of traditional salaries. This approach aligns their financial interests with company performance.
  • Comparison with Peers:
    • Mark Zuckerberg received $27 million in salary last year.
    • Rick Smith, CEO of Axon, received a $165 million stock award.
  • Potential Impact on Governance: The legal battle over Musk's pay package could set a precedent for executive compensation practices, influencing how other companies structure their incentives.

Competitive Dynamics:

  • Strategic Considerations: Tesla's approach to Musk's compensation may influence other companies to adopt similar equity-based models, potentially affecting the broader executive compensation landscape.
  • Regulatory Scrutiny: The situation may attract attention from regulators, who could scrutinize Tesla's governance and compensation practices.

Long-Term Effects:

  • Alignment of Interests: By not taking a salary, Musk remains heavily invested in Tesla's success, aligning his financial interests with shareholders.
  • Potential for Future Changes: The ongoing legal dispute could lead to changes in Tesla's compensation structure, potentially affecting Musk's financial situation.

Expert Opinions:

  • Alan Johnson (pay-consulting firm): Suggested Tesla should establish clear expectations for Musk's involvement and value creation.
  • Robin Ferracone (Farient Advisors): Advocated for setting Musk's pay based on comparisons with other top CEOs, emphasizing executive job performance.

Conclusion:

Musk's $0 salary situation underscores the evolving nature of executive compensation, particularly for high-profile founder-CEOs. It highlights the potential benefits and risks of aligning executive pay with equity stakes, while also raising questions about governance practices and regulatory oversight.