SpaceX Ties Massive Musk Stock Award to Mars Colony Goal

When SpaceX published its S-1 filing on May 20, investors expected details about what could become one of the largest initial public offerings in history.

The filing emphasizes that Mars colonization is central to SpaceX’s long-term mission. (Photo: SpaceX X)

What drew particular attention, however, was a compensation package for founder and Chief Executive Officer Elon Musk that includes an extraordinary long-term goal tied to human settlement on Mars, Catherina Gioino reported for Fortune.

According to the filing, the SpaceX board would grant Musk 1 billion restricted Class B shares if the company achieves 15 market capitalization milestones reaching as high as $7.5 trillion and successfully establishes a permanent human colony on Mars with at least 1 million inhabitants.

The award would be in addition to Musk’s existing stake of approximately 5 billion shares, reportedly valued at about $825 billion.

The proposed grant could potentially add hundreds of billions of dollars more to his holdings.

The filing emphasizes that Mars colonization is central to SpaceX’s long-term mission. The document reportedly references Mars 63 times, including within the executive compensation section.

“For the entirety of its existence, human civilization has lived on a single celestial body: Earth,” the filing states. It argues that becoming a multi-planetary species would help reduce existential risks facing humanity.

The compensation structure is also designed to preserve Musk’s voting control. The proposed stock awards consist of super-voting Class B shares carrying 10 votes per share.