Elon Musk Designs 'Anti-Lawsuit' Compensation Plan for SpaceX, with a Potential Value of Up to $1.1 Trillion

In BlockBeats news on June 6, as SpaceX is about to go public with a valuation of around $1.75 trillion, Musk has designed a potential $1.1 trillion incentive plan for himself, and has significantly increased the difficulty for future shareholders to challenge this plan by adjusting the company's governance structure and jurisdiction.

According to SpaceX's prospectus, Musk's 1.3 billion Class B super-voting shares are currently worth approximately $175 billion, and if all targets are met, the potential value could rise to $1.1 trillion. The incentive plan requires SpaceX to achieve a maximum valuation of $7.5 trillion, including goals such as establishing a Mars colony with a population of 1 million and building a data center with an annual computing power of 100 terawatts.

Reports stated that unlike Tesla's $56 billion compensation plan in 2018, which was overturned by a Delaware court, SpaceX has moved its incorporation to Texas and disclosed the relevant arrangements in the prospectus. Under Texas law, shareholders must hold at least 3% of the shares to initiate a lawsuit, corresponding to a shareholding scale of tens of billions of dollars at SpaceX's valuation of around $1.8 trillion.

Furthermore, even if the performance targets are not met, Musk can still immediately receive voting rights for the relevant shares. The prospectus shows that Musk currently holds about 85.1% of SpaceX's voting rights, and post-IPO, will retain around 82.4% of the voting rights, controlling the board through Class B shares.

Several governance and compensation experts have stated that the core purpose of this plan is not only to incentivize Musk to achieve long-term goals but also to ensure that he continues to firmly control SpaceX. Analysts point out that SpaceX will operate as a "controlled public company," where common shareholders will not have the same governance protections as typical Nasdaq-listed companies.