Elon Musk Says Charity Is 'Very Hard' After Securing Record $1 Trillion Tesla Pay Package

Elon Musk has admitted that giving away money is 'very hard', even as the world's richest man stands to receive an executive payday of up to £790 billion ($1 trillion) under a controversial new Tesla compensation scheme.

Speaking on the WTF Podcast hosted by Indian entrepreneur Nikhil Kamath, the Tesla and SpaceX chief described philanthropy as far more complicated than simply signing cheques, explaining that ensuring donations genuinely improve people's lives is the real challenge.

'I think we should definitely strive to do things that help our fellow human beings. But it's very hard,' Musk said.

'If you care about the reality of goodness rather than the perception of it, it is extremely difficult to give away money well.'

£790BN Payday Throws Spotlight on Musk's Charity Comments

The remarks come just weeks after Tesla shareholders approved Musk's unprecedented ten-year pay package, the largest proposed executive compensation deal in corporate history.

The plan would allow Musk to earn hundreds of millions of Tesla shares if the company hits a range of valuation and performance goals, culminating in a potential total reward of £790bn ($1tn) should every target be achieved.

Musk is already estimated to be worth around £356bn ($450bn), making him not only the richest individual alive but wealthier than some national economies.

Comparisons With Billionaire Rivals Fuel Criticism

Despite his fortune, Musk has long faced comparisons with fellow billionaires who give away far more aggressively, particularly MacKenzie Scott, who has donated nearly £15.8bn ($20bn) over the past five years to hundreds of charities worldwide.

Critics argue that Musk's publicly visible giving has lagged behind the scale of his wealth, intensifying scrutiny each time his compensation or shareholdings grow.

'Appearance of Goodness Versus Reality'

On the podcast, Musk pushed back against suggestions that writing large cheques equals effective charity.

'It's very easy to give money away in a way that creates the appearance of goodness,' he said.

'It is very difficult, extremely difficult, to give money away for the reality of goodness.'

He stressed that meaningful philanthropy requires careful planning to ensure donations do not simply fund bloated bureaucracies or projects that provide publicity rather than tangible benefits for communities.

Musk Foundation Operates Quietly by Design

The billionaire explained that he deliberately keeps his charitable activities low-key through the Musk Foundation, avoiding public campaigns attached to his name.

'I have a large foundation, but I don't put my name on it. In fact, I've said I don't want my name on anything,' he said.

'The biggest challenge I find with the foundation is trying to give money away in a way that is truly beneficial to people.'

Musk made similar comments in 2022 when he told TED chief Chris Anderson that philanthropy becomes 'extremely difficult' once donors prioritise measurable impact over symbolic gestures.

How Much Does Musk Actually Donate?

Recent figures suggest Musk's giving has increased, albeit quietly.

According to Bloomberg, the entrepreneur donated a record £374m ($474m) to charity in 2024. However, the majority of those funds reportedly flowed into organisations directly linked to him.

Tax records indicate roughly £292m ($370m) from the Musk Foundation was directed towards a project establishing a STEM-focused primary and secondary school, operated by one of Musk's own non-profits.

A further £27.6m ($35m) went into a donor-advised fund at Fidelity Charitable, while smaller grants were distributed to other causes including healthcare, disaster relief and education.

Tesla Pay Plan Faces Fierce Scrutiny

The CEO's mammoth compensation scheme has itself triggered intense debate among corporate governance experts and investor groups.

The deal consists of 12 tranches of restricted Tesla stock, only awarded if Musk meets paired valuation and operational milestones.

The lowest valuation target begins at £1.58tn ($2tn), well above Tesla's current market value, while the operational goals range from vehicle delivery volumes to ambitious technological launches including robotaxis, humanoid robots and full self-driving systems.

Although analysts believe Musk could clear the earliest benchmarks through continued sales growth and market enthusiasm, the more extreme targets are widely viewed as nearly impossible to reach.

Can Musk Achieve the Full £790BN Jackpot?

Many industry experts argue that Musk is unlikely to unlock the full £790bn ($1tn) payout, though partial success could still result in immense personal rewards worth many billions.

Critics fear the structure risks prioritising hype-driven share price surges over sustainable, long-term profitability for shareholders.

'Helping People Is the Real Challenge'

Against the backdrop of eye-watering personal wealth and rising criticism, Musk's reflections on charity strike a philosophical note.

'Philanthropy is necessary,' he said. 'But doing it in a way that actually helps people is one of the hardest things there is.'