Elon Musk's $158 billion Tesla pay dwarfs workers' wages, AFL-CIO says
Elon Musk received a compensation package worth $158.3 billion for the 2025 fiscal year, an amount that the AFL-CIO says is 2,522,203 times the median annual salary of a Tesla employee, which stands at $57,243.
The figure is based on the grant-date fair value of restricted Tesla stock awarded to Musk, a sum that could climb to $1 trillion if the company meets its performance targets. In practical terms, the analysis calculates that Musk earns the typical worker's yearly pay every 4.23 seconds, and during a standard 30-minute commute he would have accrued $24.36 million.
When measured against other large-cap companies, the disparity is stark. The average S&P 500 CEO earns roughly 312 times the pay of their lowest-paid employee, while Musk's multiple exceeds two and a half million. Moreover, his 2025 pay alone was 14 times larger than the combined compensation of all other S&P 500 CEOs.
Rees added that the growing concentration of wealth among a handful of billionaires is pushing the economy "out of balance" as ordinary workers struggle to meet basic expenses.
The report arrives as U.S. wage growth stalls for lower-income households. Data from the Bank of America Institute show after-tax wages for the lowest-income group rose just 1.3 % year-on-year in July, while higher-income earners saw a 3.2 % increase, widening the wealth divide.
Comparisons with other high-profile CEOs illustrate the scale of the issue. Former Walmart chief Doug McMillon earned $27.5 million in his final year, enough to out-earn the average American worker in less than 20 hours. Apple's Tim Cook collected $74.6 million in 2024, a sum that eclipses a typical worker's annual earnings in about seven hours.
The AFL-CIO's findings are likely to fuel ongoing debates in Washington about tightening executive-pay regulations and enhancing shareholder oversight. While no legislative proposal has yet been introduced, the stark numbers may prompt policymakers to revisit the Dodd-Frank Act's say-on-pay provisions and consider new measures to curb extreme pay gaps.
For now, Tesla has not responded to requests for comment, leaving investors and workers alike to watch how the company and regulators address the growing scrutiny of executive remuneration.