The $1 Trillion Question: How Much Is a CEO Really Worth?

Elon Musk might soon become the first trillionaire - if Tesla shareholders approve a pay package so big it’s making even the world’s largest investor nervous.

Norway’s $2 trillion wealth fund - yes, the one built on oil money - has just said it will vote against the deal.

The fund owns about 1% of Tesla and called the plan “too big” and “too risky.”

It’s the latest twist in a story that isn’t just about Musk, but about how much power we’re comfortable giving to the people who run the world’s biggest companies.

So let’s talk about the rise of the megapay package - and why they’re becoming both more common and more controversial.

What’s actually on the table?

Tesla’s board wants to give Musk a performance-based award that could hand him up to $1 trillion in stock over the next decade.

If Tesla’s value jumps from around $1 trillion to $8.5 trillion - yes, higher than Apple, Microsoft, and Amazon combined - Musk would walk away with an extra quarter of the company and a net worth north of $2 trillion.

That’s not a typo. Two trillion.

The idea, according to Tesla’s board, is simple: reward success.

They argue that Musk’s vision turned a niche electric car company into the world’s most valuable automaker.

The board says it’s about “keeping him motivated.”

But let’s be honest: Musk doesn’t strike anyone as unmotivated. What this really does is cement his control.

If approved, he’d own around 25% of Tesla — enough to shape almost every major decision.

And if that sounds familiar, it’s because we’ve seen this movie before.

The rise of “superstar CEO” culture

Over the past few decades, corporate power has become more personalized.

CEOs are no longer just managers; they’re brands, influencers, sometimes even political figures.

When a company does well, they’re treated like rock stars. When things go wrong, they’re still the ones with the golden parachutes.

In the U.S., the average CEO now earns over 300 times what a typical worker does.

That ratio was just 20-to-1 in the 1960s.

Supporters argue that big rewards drive innovation and risk taking - that you can’t expect someone to revolutionize transport or space travel for a standard salary.

Critics say it’s fueling inequality, distorting incentives, and creating companies that depend too heavily on one person’s image and charisma.

The Musk factor: genius or gamble?

No one divides opinion quite like Elon Musk.

To some, he’s a visionary who made electric cars mainstream and launched rockets when governments wouldn’t.

To others, he’s a volatile leader whose social media outbursts, political leanings, and side projects (hello, X and xAI) constantly distract from Tesla’s core business.

And that’s exactly what investors like Norway’s wealth fund worry about: key person risk.

It’s the idea that a company becomes too reliant on a single individual.

If that person walks, burns out, or simply shifts focus, the company wobbles.

Tesla’s own board admits this risk - they just see Musk as irreplaceable.

But history shows that no one is truly indispensable.

Apple survived Steve Jobs.

Microsoft evolved beyond Bill Gates.

The question is whether Tesla can ever be more than Musk himself.

Why these deals matter for investors

When boards approve pay packages this massive, they’re not just betting on one person - they’re sending a message about what kind of company they want to be.

A few takeaways for anyone new to investing:

• Pay signals power. How a company compensates its leaders reveals who really holds the reins - the board, the shareholders, or the CEO.
• Concentration equals risk. If one person drives most of a company’s value, it’s exciting - but dangerous. Diversified leadership (and portfolios) are safer bets.
• Accountability still matters. Megadeals can make it harder for investors to hold executives responsible. That’s why big institutional investors - like Norway’s fund - sometimes push back.

At its core, this isn’t about whether Musk “deserves” the money.

It’s about what happens when one person’s ambition starts to define a company, or even an entire market.

The bigger picture

The Musk pay vote is more than a headline about a billionaire’s bonus.

It’s a stress test for corporate governance - and for the idea that unchecked genius always delivers results.

In the modern economy, CEOs aren’t just running companies.

They’re shaping industries, influencing politics, and moving markets with a single post.

That makes it tempting to believe they’re worth whatever it takes to keep them.

But as Norway’s wealth fund just reminded everyone: even visionaries need limits.

Because at some point, a pay package stops being an incentive - and starts being a statement about power itself.