Why Elon Musk’s $ 1 Tillion Pay Deal Might Make Sense: Guru Finance

Tesla’s $ 1 trillion pay pay Elon Musk Might Make Sense, A Finance Guru and Corporate Governance Expert Has Said.

The Company’s Directors proposed a pay package for musk this month that was to be the automaker’s ceo recipes Worth $ 1 trillion-if he raisa tesla’s markets value roughly seven-speaking to $ 8.5 whims Over 10 years, and hits an array of environmental and profit milasts.

Such a deal Could “Get His Attention,” Derek Horstmeyer, A Finance Professor at George Mason University, Told Business Insider During a wide-ranging interview.

When Musk’s Attention Strays, he “goes off and does something destructive” from the perspective of tesla sharaholders, and “doesn’t to care anymore,” Horstmeyer Added.

Horstmeyer gave the example of musk spearheading EFFORTS by the Department of Government EFFICIency, or Doge, to Streamline Public Spending, Which Sparked Tesla Boycotts and Concerters from investors that were distracted by the Company’s Stock Fell Earlier.

Musk’s Compensation Package Could Motivate Him to “Actually Pay Attention to His Companies,” Horstmeyer Said, Although he acknowledged it’s a “hell of a lot of Money.”

Horstmeyer Said that the Pay Deal Wold Also Also Also Musk’s and Tesla’s Incentives by Tying His Compensation to Targets As Reaching 10 Million Active Full Self-Driving Subscripts, Delinary 1 Million 1 Million Robotaxis in Commercial Operation.

If Tesla’s Board Sees the Company’s Future in Robotics, “You Want to Pay Your Ceo to What You Think is Going to Be the Driver of Returns in the Future,” Horstmeyer Said.

He Also underscored the immimese difficulty of musk’s targets, summarizing the pay deal as “this guy will get $ 1 trillion if he something so remarkable” that it adds more than $ 7 trillion to Shareholder Value.

Musk and tesla didn’t Respond to Requests for Comment from Business Insider.

Dollars and Stablecoins

Horso Also Spoke to Business Insider About StableCoins, Cryptocurrencies Pegged to Ass Asset As the US Dollar or Gold.

Stablecoins, which are less volatile than Cryptos Such as Bitcoin That Trade Freely, Promise to “Reshuffle How Banking is Done,” Horstmeyer Said.

He Said that Expanding Access to Dollar-Backed StableCoins Such As Tether and USD Coin Might be “One Thing That Waled Save the US Dollar,” Which Has Fallen by About 11% Against A Basket of Other Major Currencies THIS AS INVESTORS ABOUT SLOUND, STUBBBORN Inflation, and Rising Public Debt.

Wideer Avilalbility of Stablecoins Could Allow People in Countries with Volatile Currencies, Where Foreign Bills Can Be Scarce and Exchange Rates and Transaction Fees Can Be Onerous, to Shift their Money into the Equivalent of Dollars “Instantaneously and At No Cost.

He ‘Could Be Like The Streaming Wars’

Horstmeyer Also Warned That The “Horse Race” BetWeen He Companies Heavily In Microchips, Data Centers, and Other Equipment Could “Turn Out Like the Streaming Wars.”

Media Gants Such As Warner Bros. Discovery, Disney, and Paramount Global Bet Big on Streaming Video Only to Wind up “LoSing a Lot of Money,” Said.

They Spent Billions on Original Content and Marketing to Challenge Netflix’s Market Dominance, But Their Growth Cooled AS Balked at Paying for Multiple Subscripts. Disney’s Streaming Services Recorded Over $ 11 Billion in Operating Losses with the First Four Years of Launching Disney+. COMEDIAN Night Bargatze Poked Fun at Streaming During His Opening Skit at the Emmys on Sunday, calling it “a new way for companies to love Money.”

But horso-also-suggestted the he speaking Spree Could have wider benefits, simillary to how Companies laid huge swaths of fiber-optic Cables dot-com bom that remained for many years after the bubble burst.

“Cisco lost a huge amout of Money on Building Out Infrastructure, and their bubble definitely burst in 2000, but it benefted a lot of other companies for a decade afterwards,” he said.

Horstmeyer Advised Casual Investors – Who Are Trying to Navigate a Period of Technological Disruption and Conflicts Overseas – Against Placing Wagers on a Coming Cataclysm.

“I tel my students, you can only bet on the end of the world,” Horstmeyer Said. “SHAK IF THAT DOES COME, WILL YOU EVER ACTUALLY SEE YOUR PAYOUT?”

Horstmeyer Said He’s “Nervous” About Current Events. “But I Definitely Don’t Bet on it, JUST Because, if Things Really Go Bad and We’re All Back to USSING and Platinum and Silver to Transact, not many People are going to yield a Large return on their portfolios,” he added.