Musk’s pay under a SpaceX-Tesla merger: voting control, but no $1 trillion payday
TSLA•A potential SpaceX-Tesla merger could give Elon Musk voting control of the combined company without immediately triggering a $1 trillion payout. Barclays analysts estimate Musk would own about 37% of the conglomerate but hold 56% of its voting power if SpaceX acquired Tesla.
1. Merger could shift control
Musk said both companies’ boards had formed special committees to discuss a potential merger. Compensation experts say a deal could give him voting control at Tesla without requiring him to meet the milestones in his pay plans, though he would likely receive only a fraction of the $1 trillion in Tesla stock awards initially.
2. Different compensation plans
SpaceX’s plan gives Musk voting power over awarded shares upfront, before he earns their economic value; he has 85% voting control at SpaceX. Tesla’s plan awards additional stock and voting power as he meets market-capitalization and operational goals. Musk has not yet achieved any of Tesla’s targets.
3. Payouts depend on terms
Barclays analysts estimated that, if SpaceX acquired Tesla at the companies’ current size, Musk would own about 37% of the combined company and hold 56% of its voting power. A merger could let Musk receive Tesla awards for meeting market-cap goals without operational milestones; Tesla’s market capitalization would need to reach $2 trillion for any awards. Experts say SpaceX’s board could amend Musk’s plan after a deal.
