ℹ️ Skipped - page is already crawled
| Filter | Status | Condition | Details |
|---|---|---|---|
| HTTP status | PASS | download_http_code = 200 | HTTP 200 |
| Age cutoff | PASS | download_stamp > now() - 6 MONTH | 0 months ago |
| History drop | PASS | isNull(history_drop_reason) | No drop reason |
| Spam/ban | PASS | fh_dont_index != 1 AND ml_spam_score = 0 | ml_spam_score=0 |
| Canonical | PASS | meta_canonical IS NULL OR = '' OR = src_unparsed | Not set |
| Property | Value |
|---|---|
| URL | https://www.economist.com/business/2025/08/07/the-elon-musk-theory-of-pay |
| Last Crawled | 2026-04-15 16:22:54 (1 day ago) |
| First Indexed | 2025-08-07 13:30:46 (8 months ago) |
| HTTP Status Code | 200 |
| Meta Title | The Elon Musk theory of pay |
| Meta Description | The worse Tesla performs, the more its boss ought to earn | Business |
| Meta Canonical | null |
| Boilerpipe Text | The captor
Photograph: Getty Images
Aug 7th 2025
|
New York
|
4 min read
D
elaware’s chancery
court stands between Elon Musk and investors willingly offering him a fortune. In 2018, when Tesla was worth around $50bn, the carmaker’s shareholders approved a plan to link Mr Musk’s pay to the value of the company. By January 2024, when the court ruled that the pay package was illegal, the carmaker and Mr Musk’s stock options were worth more than $600bn and $50bn respectively. Tesla’s board of directors had not been transparent about how Mr Musk’s pay was set, the judge said. That summer Tesla’s shareholders voted to reincorporate the company in Texas and reapprove the compensation package. The court killed it again in winter. |
| Markdown | [](https://www.economist.com/)
[Subscribe](https://www.economist.com/subscribe)
***
[The Economist Pro](https://www.economist.com/pro)
***
[Log in](https://www.economist.com/api/auth/login)
***
Menu
[](https://www.economist.com/)
[Skip to content](https://www.economist.com/business/2025/08/07/the-elon-musk-theory-of-pay#content)
[Subscribe](https://www.economist.com/subscribe)
***
[The Economist Pro](https://www.economist.com/pro)
***
[Log in](https://www.economist.com/api/auth/login)
***
Menu
***
***

[The world in brief](https://www.economist.com/the-world-in-brief)
Catch up on global daily news

[1843](https://www.economist.com/topics/1843)
Compelling long reads

[The World Ahead 2026](https://www.economist.com/topics/the-world-ahead-2026)
Future-gazing analysis, predictions and speculation

[Podcasts](https://www.economist.com/audio/podcasts)
Tune into captivating conversations

[Video](https://www.economist.com/video)
Watch engaging short films

[Insider](https://www.economist.com/insider)
Behind the scenes at The Economist

[Newsletters](https://www.economist.com/newsletters)
Curated news, direct to your inbox
Weekly edition
- [This week](https://www.economist.com/weeklyedition/)
- [Past editions](https://www.economist.com/weeklyedition/archive)
## Weekly edition
- [This week](https://www.economist.com/weeklyedition/)
- [Past editions](https://www.economist.com/weeklyedition/archive)
Current topics
## Current topics
- [War in the Middle East](https://www.economist.com/topics/war-in-the-middle-east)
- [War in Ukraine](https://www.economist.com/topics/ukraine-at-war)
- [Geopolitics](https://www.economist.com/topics/geopolitics)
- [Climate change](https://www.economist.com/topics/climate-change)
- [The world economy](https://www.economist.com/topics/economy)
- [Artificial intelligence](https://www.economist.com/topics/artificial-intelligence)
- [Trump approval tracker](https://www.economist.com/interactive/trump-approval-tracker)
World
## World
- [The world this week](https://www.economist.com/topics/the-world-this-week)
- [China](https://www.economist.com/topics/china)
- [United States](https://www.economist.com/topics/united-states)
- [Europe](https://www.economist.com/topics/europe)
- [Britain](https://www.economist.com/topics/britain)
- [Middle East](https://www.economist.com/topics/middle-east)
- [Africa](https://www.economist.com/topics/africa)
- [Asia](https://www.economist.com/topics/asia)
- [The Americas](https://www.economist.com/topics/the-americas)
- [International](https://www.economist.com/topics/international)
Business & economics
## Business & economics
- [Business](https://www.economist.com/topics/business)
- [Finance & economics](https://www.economist.com/topics/finance-and-economics)
- [Big Mac index](https://www.economist.com/interactive/big-mac-index)
- [Economic & financial indicators](https://www.economist.com/topics/economic-and-financial-indicators)
Opinion
## Opinion
- [Leaders](https://www.economist.com/topics/leaders)
- [Columns](https://www.economist.com/topics/columns)
- [By Invitation](https://www.economist.com/topics/by-invitation)
- [Letters to the editor](https://www.economist.com/topics/letters)
In depth
## In depth
- [Science & technology](https://www.economist.com/topics/science-and-technology)
- [Briefing](https://www.economist.com/topics/briefing)
- [Graphic detail](https://www.economist.com/topics/graphic-detail)
- [Interactives](https://www.economist.com/topics/interactives)
- [Special reports](https://www.economist.com/special-reports)
- [Technology Quarterly](https://www.economist.com/technology-quarterly)
- [Essay](https://www.economist.com/essay)
- [Primers](https://www.economist.com/topics/primers)
- [Schools brief](https://www.economist.com/schools-brief)
Culture, history & society
## Culture, history & society
- [Culture](https://www.economist.com/topics/culture)
- [The Economist reads](https://www.economist.com/topics/the-economist-reads)
- [Obituary](https://www.economist.com/topics/obituary)
- [Military history](https://www.economist.com/topics/military-history)
- [Archive 1945](https://www.economist.com/interactive/archive-1945)
- [Games](https://www.economist.com/topics/games)
Our A-to-Zs
## Our A-to-Zs
- [Economics](https://www.economist.com/economics-a-to-z)
- [American politics](https://www.economist.com/interactive/us-politics-glossary-election-terms)
- [Military terms](https://www.economist.com/military-terms-a-to-z)
- [International relations](https://www.economist.com/international-relations-a-to-z)
- [Weekly edition](https://www.economist.com/weeklyedition/)
- [World in brief](https://www.economist.com/the-world-in-brief)
- [United States](https://www.economist.com/topics/united-states)
- [China](https://www.economist.com/topics/china)
- [Business](https://www.economist.com/topics/business)
- [Finance & economics](https://www.economist.com/topics/finance-and-economics)
- [Europe](https://www.economist.com/topics/europe)
- [Asia](https://www.economist.com/topics/asia)
- [Middle East](https://www.economist.com/topics/middle-east)
- [Americas](https://www.economist.com/topics/the-americas)
- [Artificial intelligence](https://www.economist.com/topics/artificial-intelligence)
- [Culture](https://www.economist.com/topics/culture)
- [Cartoons & games](https://www.economist.com/topics/games)
### undefined undefined
***
Subscribe to The Economist
Unlock unlimited access to all our award-winning journalism, subscriber-only podcasts and newsletters
Subscribe to The Economist
Unlock unlimited access to all our award-winning journalism, subscriber-only podcasts and newsletters
[Subscribe](https://www.economist.com/subscribe)
***
- [Manage account](https://www.economist.com/api/my-account)
- [Gift subscriptions](https://subscribenow.economist.com/gift)
- [Log out](https://www.economist.com/api/auth/logout)
- [Manage account](https://www.economist.com/api/my-account)
- [Gift subscriptions](https://subscribenow.economist.com/gift)
- [Log out](https://www.economist.com/api/auth/logout)
[Business](https://www.economist.com/business) \| Hostage situation
# The Elon Musk theory of pay
## The worse Tesla performs, the more its boss ought to earn
Share

The captorPhotograph: Getty Images
Aug 7th 2025
\|New York\|4 min read
Delaware’s chancerycourt stands between Elon Musk and investors willingly offering him a fortune. In 2018, when Tesla was worth around \$50bn, the carmaker’s shareholders approved a plan to link Mr Musk’s pay to the value of the company. By January 2024, when the court ruled that the pay package was illegal, the carmaker and Mr Musk’s stock options were worth more than \$600bn and \$50bn respectively. Tesla’s board of directors had not been transparent about how Mr Musk’s pay was set, the judge said. That summer Tesla’s shareholders voted to reincorporate the company in Texas and reapprove the compensation package. The court killed it again in winter.
#### Already have an account?[Log in](https://www.economist.com/api/auth/login?redirect=%252Fbusiness%252F2025%252F08%252F07%252Fthe-elon-musk-theory-of-pay)
## Continue with a free trial
### Get full access to our independent journalism for free
[Free trial](https://www.economist.com/subscribe?redirect_url=%2Fbusiness%2F2025%2F08%2F07%2Fthe-elon-musk-theory-of-pay)
Or create a free account to unlock just this article
[Create account](https://www.economist.com/api/auth/register?redirect=%252Fbusiness%252F2025%252F08%252F07%252Fthe-elon-musk-theory-of-pay)
### Explore more
[Elon Musk](https://www.economist.com/topics/elon-musk)
[Business](https://www.economist.com/topics/business)
[Corporate governance](https://www.economist.com/topics/corporate-governance)
[Management](https://www.economist.com/topics/management)
***
Share
[Reuse this content](https://s100.copyright.com/AppDispatchServlet?publisherName=economist&publication=economist&title=The%20Elon%20Musk%20theory%20of%20pay&publicationDate=2025-08-07&contentID=%2Fcontent%2Ffc8spe8le1rciohlkflb4lugk0uh8m6r&type=A&orderBeanReset=TRUE)
***
## [More from Business](https://www.economist.com/business)

### [Why Anthropic and OpenAI are locking up their latest models](https://www.economist.com/business/2026/04/15/why-anthropic-and-openai-are-locking-up-their-latest-models)
Allowing only a privileged few companies to use them may make commercial sense

### [America’s corporate boards are under siege](https://www.economist.com/business/2026/04/14/americas-corporate-boards-are-under-siege)
Activist shareholders and regulatory changes are undermining their control
***

### [From Ralph Lauren to The Row, American luxury is booming](https://www.economist.com/business/2026/04/13/from-ralph-lauren-to-the-row-american-luxury-is-booming)
Can the old world fight back?
***
Bartleby
### [The pros and cons of stretch goals](https://www.economist.com/business/2026/04/09/the-pros-and-cons-of-stretch-goals)
Setting really tough targets encourages risk-taking, for good and bad
### [Japan’s mighty carmakers are in serious trouble](https://www.economist.com/business/2026/04/09/japans-mighty-carmakers-are-in-serious-trouble)
They will need bold thinking to survive
### [A giant succession wave is coming for family businesses](https://www.economist.com/interactive/business/2026/04/09/a-giant-succession-wave-is-coming-for-family-businesses)
Many will not survive
***
***
Get The Economist app on [iOS](https://apps.apple.com/us/app/the-economist-news-podcasts/id1239397626?source_caller=ui&shortlink=hpmr1dtw&c=standalone-app-page+iPhone+bottom&pid=standalone-app-page&af_xp=custom) or [Android](https://play.google.com/store/apps/details?id=com.economist.lamarr&source_caller=ui&shortlink=1oggayn5&c=Standalone%20app%20promo%20Android%20link%20bottom&pid=standalone-app-page&af_xp=custom)
***
The Economist
## The Economist
- [About](https://www.economistgroup.com/about-us)
- [Reuse our content](https://www.economist.com/syndication)
- [Subscribe](https://www.economist.com/subscribe)
- [Gift subscriptions](https://subscribenow.economist.com/gift)
- [The Economist Pro](https://www.economist.com/pro)
- [SecureDrop](https://www.economist.com/securedrop)
The Economist Group
## The Economist Group
- [The Economist Group](https://www.economistgroup.com/)
- [Economist Enterprise](https://www.economistenterprise.com/)
- [Economist Enterprise Events](https://events.economist.com/?RefID=e.com-home&utm_source=e.com&utm_medium=website&utm_campaign=group-aff&utm_content=footer-link)
- [Economist Education Courses](https://education.economist.com/)
Contact
## Contact
- [Help and support](https://myaccount.economist.com/s/help)
- [Advertise](https://impact.economist.com/)
- [Press centre](https://www.economistgroup.com/group-news)
- [Affiliate programme](https://www.economist.com/affiliate)
Careers
## Careers
- [Working here](https://www.economistgroup.com/careers)
- [Executive Jobs](https://jobs.economist.com/)
***
To enhance your experience and ensure our website runs smoothly, we use cookies and similar technologies.
Manage cookies
***
- [Terms of use](https://www.economistgroup.com/terms-of-use)
- [Privacy](https://www.economistgroup.com/privacy-policy)
- [Cookie Policy](https://www.economistgroup.com/cookies-policy)
- [Accessibility](https://www.economistgroup.com/accessibility-policy)
- [Modern Slavery Statement](https://www.economistgroup.com/esg/modern-slavery-act-statement)
- [Sitemap](https://www.economist.com/sitemap)
- [Your Privacy Choices](https://www.economist.com/privacyportal)
Registered in England and Wales. No. 236383 \| Registered office: The Adelphi, 1-11 John Adam Street, London, WC2N 6HT \| VAT Reg No: GB 340 436 876
© The Economist Newspaper Limited 2026 |
| Readable Markdown | 
The captorPhotograph: Getty Images
Aug 7th 2025\|New York\|4 min read
Delaware’s chancerycourt stands between Elon Musk and investors willingly offering him a fortune. In 2018, when Tesla was worth around \$50bn, the carmaker’s shareholders approved a plan to link Mr Musk’s pay to the value of the company. By January 2024, when the court ruled that the pay package was illegal, the carmaker and Mr Musk’s stock options were worth more than \$600bn and \$50bn respectively. Tesla’s board of directors had not been transparent about how Mr Musk’s pay was set, the judge said. That summer Tesla’s shareholders voted to reincorporate the company in Texas and reapprove the compensation package. The court killed it again in winter.

***
*** |
| Shard | 135 (laksa) |
| Root Hash | 16779481905418258935 |
| Unparsed URL | com,economist!www,/business/2025/08/07/the-elon-musk-theory-of-pay s443 |