SpaceX ties Musk compensation to Mars colonization goal

SpaceX ties Musk compensation to Mars colonisation goalSign up now: Get ST's newsletters delivered to your inboxSpaceX founder Elon Musk will receive 200 million in super-voting restricted shares if SpaceX establishes a permanent human colony on Mars.PHOTO: REUTERSPublished Apr 28, 2026, 06:28 PMUpdated Apr 28, 2026, 09:50 PMListenSpaceX’s board has approved a compensation plan for founder Elon Musk with goals as futuristic and celestial as the company’s ambitions: colonising Mars and running data centres in outer space.The details of Mr Musk’s sweeping pay package, which have not been widely reported, were revealed in the company’s confidential registration statement filed in recent weeks with the Securities and Exchange Commission and reviewed by Reuters last week.The lofty rewards dangled for Mr Musk by SpaceX show the challenge of holding the attention of the serial entrepreneur as he prepares to take the rocket maker public. They also potentially set up SpaceX investors for tensions with shareholders of Tesla, where Mr Musk is chief executive officer, say corporate governance experts.Connecting science-fiction visions with accounting commitments, the SpaceX board in January approved a pay package for the world’s richest man that will award 200 million in super-voting restricted shares if the company hits a market value of US$7.5 trillion (S$9.5 trillion) and establishes a permanent human colony on Mars with at least 1 million people, according to excerpts from the company’s registration statement reviewed by Reuters.His Mars-shot performance package also gives him as many as 60.4 million in restricted shares awarded on March 23 if SpaceX meets separate valuation goals and operates data centres in space that provide at least 100 terawatts of compute capacity – a colossal amount of power equal to 100,000 gigawatts, or about 100,000 one-gigawatt nuclear reactors running all at once.Both awards come with super-voting Class B restricted stock, which carries 10 votes to every 1 Class A share, and vest in tranches as the company’s value rises.Conditional rewards, stock optionsHowever, he will not receive a single share if the company fails to reach the board’s lofty valuation targets, which are not tied to a specific timeline other than his continued employment. He has received a nominal salary from SpaceX of US$54,080 per year since 2019.The value of the pay package could not be determined since SpaceX is privately held. SpaceX is targeting an initial public offering around the time of Mr Musk’s birthday on June 28, which could value the company at some US$1.75 trillion, Reuters has reported.As at Dec 31, 2025, he held 68.8 million in previously awarded Class B stock options with a strike price of about US$42 that expire in 2031, allowing Mr Musk to pocket any profit above that amount if he exercises the options before that date.Mr Musk is already worth US$776 billion by Forbes’ estimate. SpaceX aside, he could more than double that if he achieves separate, ambitious performance goals at Tesla, the EV automaker he also runs. He owned about 20 per cent of that company’s stock as at November 2025, according to the registration statement.SpaceX and Tesla did not respond to requests for comment. The Information and Reuters have previously reported SpaceX pay targets for Mr Musk linked to a Mars colony and to space data centres.Executive compensation expert Eric Hoffmann, chief data officer for corporate governance consulting firm Farient…

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