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

June 6 (BlockBeats) — As SpaceX prepares for its upcoming initial public offering (IPO) with a projected valuation of roughly $1.75 trillion, Elon Musk has crafted a potential $1.1 trillion compensation package for himself—one that also adjusts the company’s governance structure and state of incorporation to make it far more difficult for future shareholders to challenge this plan. Per SpaceX’s latest prospectus, Musk’s 1.3 billion Class B super-voting shares are currently valued at approximately $175 billion. If all performance targets are met, however, the value of these shares could surge to $1.1 trillion. The incentive plan requires SpaceX to reach a maximum valuation of $7.5 trillion, with milestones including building a Mars colony with a population of 1 million and constructing a data center capable of 100 terawatts of annual computing power. Notably, this differs from Tesla’s $56 billion compensation plan in 2018, which was overturned by a Delaware court. SpaceX has since moved its legal incorporation to Texas and disclosed all relevant terms in its prospectus. Under Texas state law, shareholders must hold at least 3% of the company’s outstanding shares to file a lawsuit. At SpaceX’s current ~$1.8 trillion valuation, that threshold translates to holdings worth tens of billions of dollars—an unusually high bar for most small or mid-sized investors. Even if the performance targets outlined in the plan are not met, Musk will still gain immediate voting rights for the associated shares. Right now, Musk controls roughly 85.1% of SpaceX’s total voting power. Post-IPO, that number will stay around 82.4% thanks to his Class B shares, giving him unfettered control over the company’s board of directors. Several corporate governance and compensation experts say the plan’s dual purpose is to motivate Musk to hit long-term goals and ensure he retains tight control over SpaceX indefinitely. Analysts add that SpaceX will operate as a so-called "controlled public company," meaning common shareholders will not benefit from the same governance protections that are standard for most companies listed on the Nasdaq exchange.