stacking up

How Elon Musk's $44.9B Tesla pay package compares with the most generous plans for other U.S. CEOs

Here's how Texan Elon Musk's unprecedented pay package compares to his peers. Photo via Getty Images

Even though the median U.S. CEO pay package last year was nearly 200 times more than a worker in the middle of their company pay scales, Elon Musk's record-setting Tesla compensation dwarfs them by comparison.

Tesla shareholders on Thursday voted overwhelmingly in favor of restoring Musk's 10-year pay plan, valued by the company in April at $44.9 billion. It was worth more early in the year, but Tesla's stock value has fallen about 25% since then.

The all-stock package, approved by the board and shareholders in 2018, rewards Musk for hitting milestones that include raising Tesla's market value, pretax income and revenue.

It had been tossed out by a Delaware judge in January who said the process for approving it was “deeply flawed.” The court ruled that Musk controlled the company's board, and shareholders weren't fully informed.

But the company said Musk deserves the pay because he turned Tesla into the top-selling electric vehicle maker in the world, increasing its market value by billions.

Even with the reapproval vote, Musk won't get access to the stock options just yet. Tesla is expected to ask the judge to revisit her decision in light of the vote, and if she doesn't, the company probably will appeal the ruling to Delaware's Supreme Court. The whole process could take months.

No matter the outcome, Musk's package — the largest award to a CEO of a U.S. public company — is far above what's been granted to other chief executives. Here's how the package compares:

WITH THE MEDIAN CEO PAY

The median pay package for an S&P 500 U.S. CEO last year was $16.3 million, according to data analyzed for The Associated Press by Equilar. If you multiply that by 10 to get $163 million for a decade of work, Musk's earnings still would be 275 times greater.

In her January ruling that struck down the package, Delaware Chancellor Kathaleen St. Jude McCormick wrote that Musk's package, then worth about $56 billion, was 250 times larger than the median peer CEO's pay plan.

WITH INDIVIDUAL CEOS

The top earner in the AP's survey was Hock Tan, CEO of artificial intelligence company Broadcom Inc. His package, mostly consisting of stock awards, was valued at about $162 million, when given to Tan at the start of fiscal 2023. Thanks to a surging stock price, Broadcom in March valued Tan’s pay package, plus older options he hadn’t yet cashed in, at $767.7 million. That's an amount easily eclipsed by Musk’s potential haul of 304 million shares worth almost $45 billion.

Other CEOs at the top of AP's survey are William Lansing of Fair Isaac Corp, ($66.3 million); Tim Cook of Apple Inc. ($63.2 million); Hamid Moghadam of Prologis Inc. ($50.9 million); and Ted Sarandos, co-CEO of Netflix ($49.8 million).

Technically, Musk got no compensation last year because he didn't get any stock options. But he stands to get even richer if his pay package goes through.

WITH TESLA WORKERS

It's difficult to calculate what Musk's annual pay would have been last year. The company says he got nothing. But if his compensation package makes it through the courts, his pay will be in the billions. According to the company's proxy filing this year, the median annual pay of a non-CEO Tesla employee last year was $45,811.

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A View From HETI

Quantum Power Systems took home the top TEX-E prize at this year's Energy Venture Day pitch competition during CERAWeek. Photo via LinkedIn

Twelve teams from around the country, including several from Houston, took home top honors at this year's Energy Venture Day and Pitch Competition at CERAWeek.

The fast-paced event, held March 25, put on by Rice Alliance, Houston Energy Transition Initiative and TEX-E, invited 36 industry startups and five Texas-based student teams focused on driving efficiency and advancements in the energy transition to present 3.5-minute pitches before investors and industry partners during CERAWeek's Agora program.

The competition is a qualifying event for the Startup World Cup, where teams compete for a $1 million investment prize.

PolyJoule won in the Track C competition and was named the overall winner of the pitch event. The Boston-based company will go on to compete in the Startup World Cup held this fall in San Francisco.

PolyJoule was spun out of MIT and is developing conductive polymer battery technology for energy storage.

Rice University's Resonant Thermal Systems won the second-place prize and $15,000 in the student track, known as TEX-E. The team's STREED solution converts high-salinity water into fresh water while recovering valuable minerals.

Teams from the University of Texas won first and second place in the TEX-E competition, bringing home $25,000 and $10,000, respectively. The student winners were:

Companies that pitched in the three industry tracts competed for non-monetary awards. Here are the companies named "most-promising" by the judges:

Track A | Industrial Efficiency & Decarbonization

Track B | Advanced Manufacturing, Materials, & Other Advanced Technologies

  • First: Licube, based in Houston
  • Second: ZettaJoule, based in Houston and Maryland
  • Third: Oleo

Track C | Innovations for Traditional Energy, Electricity, & the Grid

The teams at this year's Energy Venture Day have collectively raised $707 million in funding, according to Rice. They represent six countries and 12 states. See the full list of companies and investor groups that participated here.

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