The board of SpaceX has reportedly approved an innovative compensation plan for its founder, Elon Musk, which is linked to the company’s ambitious Mars colonization and space-based data center operations.
As detailed in a confidential registration statement filed with the Securities and Exchange Commission, Musk’s pay will be linked to SpaceX’s ambitious goals of colonizing Mars and running data centers in outer space, Reuters reported on Tuesday.
Musk stands to gain 200 million super-voting restricted shares if SpaceX achieves a market value of $7.5 trillion and establishes a permanent human colony on Mars with at least 1 million residents. Additionally, Musk could receive up to 60.4 million restricted shares if SpaceX hits separate valuation targets and successfully operates space-based data centers delivering at least 100 terawatts of computing capacity.
However, if SpaceX fails to meet these lofty valuation targets, Musk will not receive any shares. This plan could potentially cause tension with shareholders of Tesla Inc. (NASDAQ:TSLA), where Musk also serves as CEO.
SpaceX is reportedly preparing for an IPO around Elon Musk's birthday on June 28, with a potential valuation of about $1.75 trillion.
SpaceX did not immediately respond to Benzinga‘s request for comments.
Musk Secures Control Ahead of IPO Push
This move follows Musk’s recent purchase of $1.4 billion worth of shares, which would reportedly allow him to retain substantial voting control post-IPO. Following the IPO, Musk will remain CEO, CTO, and chairman of the nine-member board of directors, Reuters reported Tuesday.
Another report suggested that SpaceX's board has approved a new "moonshot" pay structure and dual-class IPO design, giving Musk and top executives super-voting Class B shares while outside investors receive lower-vote Class A shares, similar to a model Musk wished Tesla had adopted in 2010.
In November, Tesla shareholders approved a record $1 trillion pay package for Musk, with over 75% voting in favor. The deal could make Musk the first trillionaire if he meets the performance targets tied to it.
SpaceX Warns on Mars, Orbital Data Risks
Last week, Elon Musk reportedly warned potential IPO investors that its ambitious plans for orbital data centers and Mars colonization depend on unproven technology and may never become commercially viable. In SEC filings, the company described both initiatives as early-stage efforts involving significant technical complexity and risks, including the harsh conditions of space that could cause system failures.
The cautious disclosures contrast with Musk's public optimism about space-based AI computing and building a Mars colony, underscoring uncertainty around the projects' real-world feasibility and financial returns.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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