SpaceX has approved an extraordinary compensation package for its founder, Elon Musk, linking his rewards to futuristic milestones such as colonising Mars and building vast data centres in space, according to details contained in a confidential filing with the US Securities and Exchange Commission.
The previously unreported package underscores the scale of ambition driving the rocket maker as it prepares for a potential public listing, while also highlighting the challenge of retaining Musk’s focus across his sprawling business empire.
According to excerpts from the registration statement, the SpaceX board in January approved a performance-based award that would grant Musk 200 million super-voting restricted shares if the company achieves a $7.5 trillion market valuation and successfully establishes “a permanent human colony on Mars with at least 1 million people”.
The filing states: “The SpaceX board … approved a pay package … that will award 200 million in super-voting restricted shares if the company hits a market value of $7.5 trillion and establishes a permanent human colony on Mars with at least 1 million people.”
In addition, Musk could receive up to 60.4 million restricted shares awarded on March 23 if SpaceX meets separate valuation targets and develops space-based data centres capable of delivering at least 100 terawatts of computing power.
The document notes that the company must “operate data centers in space that provide at least 100 terawatts of compute capacity,” a level of energy equivalent to roughly 100,000 one-gigawatt nuclear reactors operating simultaneously.
Both stock awards come in the form of super-voting Class B shares, each carrying 10 votes compared with one vote for Class A shares, and will vest in stages as the company’s valuation increases.
However, the package is structured with strict conditions. Musk will not receive any shares unless the ambitious targets are met, and there is no fixed timeline beyond his continued employment at the company. Since 2019, he has drawn a nominal annual salary of $54,080 from SpaceX.
The total value of the compensation package remains unclear because SpaceX is privately held. The company is reportedly targeting an initial public offering around 28 June, which could value it at approximately $1.75 trillion.
As of 31 December, Musk already held 68.8 million previously awarded Class B stock options, with a strike price of about $42 and an expiry date of 2031, allowing him to benefit from any share price appreciation above that level.
The scale and structure of the package could also raise governance concerns, particularly in relation to Musk’s leadership of Tesla, where he serves as chief executive. Analysts say the overlapping incentives may create tension between investors in both companies.
Musk, currently estimated by Forbes to be worth $776 billion, could further expand his fortune significantly if he meets similarly ambitious performance targets at Tesla, where he owned about 20 per cent of the company as of November, according to the filing.
Boluwatife Enome
