Why Elon Musk’s $50 billion payday scandal matters

Last week, Tesla shareholders voted to approve a huge pay package for CEO Elon Musk that a judge previously struck down. If the payout is approved, Musk will receive company shares worth around US $50-billion. Last year, Loblaw’s CEO was paid more than $22-million. These pay packages are supposed to act as incentives for reaching company targets, but most executives can still receive these massive payouts even if they don’t meet their company’s objectives.

David Milstead is a reporter and columnist with The Globe’s Report on Business. He joins the show to discuss why big paydays for executives still happen – and why they matter – even in instances of corporate failure.

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