Musk's SpaceX compensation plan could reach $110 billion

Huoxing Finance reports that, as SpaceX prepares to go public at an estimated valuation of approximately $1.75 trillion, Musk has designed an equity incentive plan with a potential value of up to $1.1 trillion. By restructuring corporate governance and relocating its incorporation to Texas, he has significantly increased the difficulty for future shareholders to challenge this plan. According to SpaceX’s prospectus, the 1.3 billion Class B super-voting shares Musk has received are currently valued at approximately $175 billion; if all targets are met, their potential value could rise to $1.1 trillion. The incentive plan requires SpaceX to achieve a market capitalization of up to $7.5 trillion, alongside milestones such as establishing a permanent Martian colony with one million residents and building a data center with an annual computing capacity of 100 terawatts. Unlike Tesla’s $56-billion compensation package in 2018, which was overturned by a Delaware court, SpaceX has relocated its incorporation to Texas and disclosed these arrangements in advance in its prospectus. Under Texas law, shareholders must hold at least 3% of shares to initiate litigation—equivalent to hundreds of billions of dollars given SpaceX’s ~$1.8 trillion valuation. Moreover, even if performance targets are not met, Musk will immediately gain voting rights over these shares. The prospectus shows that Musk currently holds approximately 85.1% of SpaceX’s voting power and will retain about 82.4% after the IPO, maintaining control of the board through Class B shares. Multiple governance and compensation experts say the core purpose of this plan is not merely to incentivize Musk to achieve long-term goals, but to ensure his continued firm control over SpaceX. Analysts note that SpaceX will operate as a “controlled public company,” meaning ordinary shareholders will not enjoy the same governance protections typically afforded to standard Nasdaq-listed firms.