Elon Musk Receives Zero Salary from Tesla, Agrees in Affirmative

Strategic Insights -

Elon Musk, the tech billionaire and CEO of Tesla, has received zero salary from the company for seven years, according to a recent Wall Street Journal report. Musk has responded to the report in an X post, stating that he has indeed not received a salary, despite increasing the value of the company by 2000%. The report highlights a long-standing dispute between Musk and Tesla's board of directors over his compensation package, which includes a massive stock award from 2018.

Key Takeaways:

  • Elon Musk has received zero salary from Tesla for seven years, despite increasing the company's value by 2000%.
  • The dispute between Musk and Tesla's board of directors began in 2018 over his performance-based compensation package, which included 304 million stock options.
  • The Delaware judge, Kathaleen McCormick, cancelled the deal in January 2024, citing excessive compensation and undue influence by Musk on the board.
  • The stock options were initially worth $56 billion in January 2024 and peaked at $146 billion in December 2024.
  • The current value of the stock options is around $98 billion based on Tesla's share price.
  • Tesla's board has established a special committee to review Musk's compensation, comprising board chair Robyn Denholm and director Kathleen Wilson-Thompson.
  • The committee was disclosed in a SEC filing for the quarterly period ended March 31, 2025.
  • Musk's compensation package has been the subject of controversy, with some arguing that it is excessive and unduly benefits Musk.
  • The dispute has been ongoing for several years, with the board trying to resolve the issue through a special committee.

Statistics:

  • Zero salary for seven years
  • 2000% increase in company value
  • 304 million stock options awarded in 2018
  • $56 billion value in January 2024
  • $146 billion value in December 2024
  • $98 billion current value based on Tesla's share price

Sources:

  • Wall Street Journal (WSJ) - "How Much Should the Worlds Richest Man Get Paid?"
  • X - Elon Musk's post confirming zero salary
  • Financial Times - "Tesla Board Forms Special Committee to Review Elon Musk's Compensation"