Daily Times: Despite being the world’s richest person, Elon Musk received no salary from Tesla in 2024, according to a recent report by The Wall Street Journal. Musk, who serves as Tesla’s CEO, was the lowest-paid executive among S&P 500 companies last year.
The reason for this zero-compensation lies in an ongoing legal battle. In 2018, Tesla’s board approved a massive $56 billion compensation package for Musk, tied entirely to performance goals. However, that package has since been rejected twice by a Delaware court, following a lawsuit filed by shareholder Richard Tornetta.
ornetta alleged that Musk had effectively designed his own pay plan and that Tesla’s board misled shareholders by not properly disclosing key details of the agreement. The court ruled in favor of the shareholder earlier this year, stating that Tesla’s board had failed to negotiate the package fairly and transparently.
Responding to a post on X (formerly Twitter), Musk confirmed that he has not received a salary in over 7 years, despite Tesla’s value increasing by more than 2,000% in that period. “I’ve received nothing in salary or bonuses,” Musk wrote.
Musk still owns approximately 13% of Tesla shares, making him the company’s largest individual shareholder. That stake continues to be the primary source of his wealth, even in the absence of a formal paycheck.
The court has now directed Musk and Tesla’s legal team to cooperate in implementing the ruling, which could reshape how executive compensation is handled in publicly traded companies moving forward.
