The Case Against Elon Musk’s $46 Billion Pay Deal

If this column had a vote, which it doesn’t, it would cast it against Elon Musk’s gargantuan pay deal at Tesla’s TSLA -0.60%decrease; red down pointing triangle coming annual general meeting.

Worth $46 billion at the latest share price, the chief executive’s contested 2018 packet is disproportionate in every way. It is almost 300 times as much as what America’s best-paid CEO for 2023 earned ($162 million). It is also more than twice the annual free cash flows Tesla has generated in its entire existence, including expectations for this year ($22.5 billion). And, crucially for shareholders, who would pay for it through the dilution of their holdings, it is about 8% of the company’s market value ($557 billion).

Source: WSJ