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Elon Musk’s $1trn pay deal highlights companies’ superstar dilemma

EVERY EMPLOYER knows that, in the knowledge economy, a superstar employee is worth every penny. When that employer is Tesla and the employee is Elon Musk, he is worth up to 100trn pennies. On November 6th the electric-car maker said that more than 75% of its shareholders had backed its chief executive’s new compensation package, which would grant him up to $1trn-worth of Tesla shares over ten years. To pocket it all, the star chief executive must do a reliably stellar job, including lifting Tesla’s market capitalisation to $8.5trn, from $1.4trn today. Ahead of the shareholder vote Mr Musk threatened that if he did not get his inducement, he simply might not bother.

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