Is He Worth the Money?

That’s the question the nattering Left is asking about Elon Musk’s new pay package on offer from Tesla—a package that could aggregate to a trillion dollars over 10 years. Of course, we’d expect such a question from the Left—and from too many Progressive-Democratic Party politicians who disparage free market capitalism.

Of course, in one sense—a sense at the core of free markets—is by definition, Musk is worth the money: all the parties to the package voluntarily and of their own accord agreed to it, each satisfied that they’re better off after agreeing than before.

What the natterers carefully ignore, though, is this:

…the Tesla CEO will get richer only if workers and shareholders do too. Oh, and only if consumers like what Tesla is selling.
Tesla’s board recently proposed a pay package for Mr Musk worth up to $1 trillion over 10 years, contingent on the company achieving ambitious milestones.

Musk has actually to perform in order actually to earn that pay. That’s another aspect at the core of free markets: folks must earn their compensation; they’re not entitled to money just because they think they’re special.

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