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At $0, Musk lowest paid S&P 500 CEO in 2024: Why Tesla hasn't paid him?
Tesla chief Elon Musk becomes the lowest paid chief executive of a S&P 500 company as his $56 billion pay package from the EV maker remains in legal limbo
New Delhi
Tesla chief Elon Musk was officially the lowest-paid chief executive in the S&P 500 last year, receiving no salary or stock compensation from the electric vehicle maker, according to a report by The Wall Street Journal.
Reacting to the news, Musk confirmed the reports on X, stating, 'Zero for seven years, despite increasing the value of the company >2000 per cent.'
Zero for seven years, despite increasing the value of the company >2000% https://t.co/QNNHxpi3T2
— Elon Musk (@elonmusk) June 2, 2025
Why is Tesla not paying Musk?
This continues a pattern in place since 2018, when Musk's controversial $56 billion compensation package, tied to aggressive growth milestones, was first approved by Tesla's board and later by shareholders.
That deal, however, has since been thrown into legal limbo. In January 2024, a Delaware court ruled the package 'excessive' and voided it, citing a flawed approval process and calling the board 'supine servants of an overweening master'.
Despite Musk having unlocked all 304 million stock options by 2023, at one point worth $146 billion, the judge deemed the board too close to Musk to exercise proper oversight.
In response, Tesla has appealed the decision. The EV maker also moved its headquarters to Texas from Delaware in protest of the ruling.
If the company is able to have Musk's pay package reinstated, the award would raise Musk's ownership in the company from 12 per cent to over 20 per cent.
Tesla's committee to oversee Musk's pay
Amid these tensions, Tesla, last month, formed a special committee to devise a potential new compensation structure. The company has delayed its annual shareholder meeting to allow the committee, advised by Texas-based law firm McDermott Will & Emery, to draft a performance-linked proposal.
However, reissuing the 2018 award may come at a steep cost, as it would trigger a $50 billion accounting charge and a 57 per cent tax liability for Musk.
Musk walks away from DOGE
The pay dispute comes at a turbulent time for Tesla. The company faces falling EV sales in the US and Europe, slowing growth in China, and intensifying competition. Musk's political entanglements, including open support for Donald Trump and a prominent role in US governance, have drawn criticism from investors. However, Musk had already begun distancing himself from politics and officially stepped down from his government role at the Department of Government Efficiency (DOGE) last week. This shift should ease criticism of Musk's attention being divided.
Despite the compensation deadlock, Musk's wealth remains substantial, with Forbes estimating his net worth at $415.7 billion. Alongside Tesla, he also leads aerospace firm SpaceX and AI venture xAI, which recently merged with his social media platform X.
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