Senator Bernie Sanders has strongly condemned Elon Musk’s recently approved $1 trillion compensation package at Tesla Inc., labeling it as “insanity” and calling for the immediate implementation of a billionaire tax. The package, which is the first of its kind in global corporate history, has been designed to motivate Musk’s performance by setting high targets that he must meet to receive any compensation.
Pay Package Comparison
The sheer scale of Musk’s compensation package is staggering, exceeding the combined pay of millions of American workers. According to Sanders, Musk’s 10-year compensation package is worth more than the combined pay of:
- Every elementary school teacher in America
- Every cashier in America
- Every restaurant cook in America
- Every farmworker in America
- Every bartender in America
Sanders has concluded that this disparity is “insanity” and has called for a billionaire tax to be implemented immediately.
Legislative Response
Sanders has been a vocal critic of Musk’s new compensation package, previously describing it as an “oligarchy” and “grossly immoral”. The senator has also pointed out that Musk receives a $1 trillion pay package while low-income children face cuts to Supplemental Nutrition Assistance Program (SNAP) benefits.
Other notable figures have also spoken out against the package, including Rep. Dan Goldman, who has stated that Musk paid a 3.3% effective tax rate by taking tax-free loans against stock. Pope Leo XIV has also voiced concerns about income inequality, criticizing CEO pay that reaches 600 times that of worker wages.
Shareholder Approval Details
The pay package was approved by Tesla shareholders in November with over 75% support. The package consists of 12 tranches tied to market capitalization milestones starting at $2 trillion, with the final payout requiring Tesla to reach $8.5 trillion in value. Musk has ten years to unlock each grant and can receive 35.312 million shares, adding roughly 1% to his current 16% stake, by achieving one new market cap milestone and one operational target in any order.
Stock Performance
Despite the controversy surrounding Musk’s compensation package, Tesla stock has gained 23.14% over the past year and 59.82% over the past six months. With a market capitalization of $1.51 trillion, TSLA shares have an annual range of $214.25 to $488.54.
Call to Action
The debate surrounding Musk’s compensation package has highlighted the need for a billionaire tax to address income inequality. As Sanders has pointed out, the current system is “insanity” and needs to be changed. The implementation of a billionaire tax could help to reduce the vast wealth disparities that exist in the United States and ensure that everyone contributes their fair share.