According to an excerpt from the SpaceX initial public offering prospectus, company founder Elon Musk has designed an extremely rare power structure for himself: "Only Elon Musk can fire Elon Musk." The terms underscore how the billionaire will consolidate his absolute control over the rocket and AI-making giant that is about to become a public company.
Documents show that SpaceX plans to adopt a dual-class share structure after its IPO of up to US$1.75 trillion. Class A shares issued to the public carry one vote per share, while Class B shares held by Musk and a handful of insiders carry 10 votes per share.
In terms of staffing, Musk will "wear three hats": continue to serve as CEO, chief technology officer, and concurrently serve as chairman of the nine-member board of directors.
Usually listed companies have a majority of independent directors, but SpaceX applied for a "controlled company" exemption, which means that its board of directors does not need to have a majority of independent directors, nor does it need to establish independent compensation and nomination committees.
"Sky-high price incentives" to unlock power
In addition to controlling personnel appointments and removals, Musk's salary is also linked to interstellar goals. The board of directors approved a very ambitious performance equity plan: if the company's market value rises from the current approximately US$1.1 trillion to a maximum of US$7.5 trillion, and if it completes its goals of establishing a million-population colony on Mars and building a space data center, he will receive a huge equity award.
Analysts pointed out that although this structure limits the influence of public shareholders, it provides SpaceX with the greatest flexibility to pursue its long-term grand vision, trying to avoid the many controversies Tesla has encountered in governance.