Why Elon Musk’s $44 billion payday should worry Australians

In the case of leadership, the legend of the great man straightens and serves the interests of the elite. Carl Rhodes.

A special committee collected by Tesla’s Board of Directors on August 4 shareholders To announce that the company gives technology mogul Elon Musk 96 million Tesla Precious stock 29 billion dollars (44 billion dollars) as a fee. It was a groundbreaking payment day, making Musk’s record has already held more tenfold.

Musk is the highest paid CEO in history in his own league, but the fall is more than just a figure titled.

This is a window to the myths and mistakes that continue not only in the United States, but also in Australia.

Great Elon!

Their letter For the shareholders, Tesla’s board revealed in detail that they felt justified to pay a large amount of an unprecedented amount to Musk.

TESLA Chairman of the Board of Directors Robyn denholm and independent director Kathleen Wilson-ThompsonTwo members of the private committee approved the agreement wrote:

‘Elon is more important than ever.’

They claimed that Tesla’s future trusted. “Elon’s unique vision and leadership”He positions him alone:

‘…[a] Strategic prediction, adaptability and ruthless execution of the leader who combines better than competition and to inspire the team. ‘

Tesla’s musk depiction “Great man theory” – A discredited approach to the history that pioneered by the Scottish historian in the 19th century Thomas Carlyle.

According to this theory, daily people and communities have little influence on shaping history. Instead, it is the attempt and action of several people with decisive power – always men -.

These legendary men are depicted superhuman in their natural abilities and rise over their contemporaries to draw the world’s course. In return, they deserve power and respect, less mortals are expected to follow.

Tesla’s twist in the Great Man Legend is that it justifies the richest status of Musk’s size as the richest. person In the world. Lesson: Inequality is fair.

Australia’s animal souls

Using the narrative of the “great man” to justify the excessive CEO payment is not limited to the trends in Tesla. If there is something, there is an extreme example of what is going on around the world, including Australia.

The privilege of singular entrepreneurship as a source of economic value is a well -known neoliberal thing to us. Former prime minister Scott Morrison Used to respect the virtues of “animal souls” “You can do capitalism“To solve the problems of the world.

We see today Australian Business Council arrangement business It would be an economic disaster to domesticate their extremes. Unless the work is opened, arguments go, disaster emerges: Things disappear, investment becomes tank, retirement decreases and basic services are solved.

A striking example of the great human theory in the action, the Australian financial examination (AFR) The annual celebration of the CEO reserve ‘in which it was publishedRich bosses’ list. The top ten on this year’s list has more than $ 60 billion in the companies they work for.

These bosses are definitely men – from Afr’s most fifty rich boss, there are six Andrews, but there are only three women. Afr seems to think they are great, ‘A new wave of rich leaders.’

No problem for some

Although the great human theory is alive and good in Australia, our stronger governance, our tight regulation and our more egalitarian culture have so far has the excesses in the United States so far.

The CEO fee is a Turnusol test for faith in major business leaders. Average CEO is paid in America 268 times as much as the average worker. In Australia 55.

There is still a reason to worry. We may not share the surplus of American, but the orbit we are on for some time points in the same direction; The so -called great male entrepreneurs and businessmen (usually men) reward at the expense of people who really do the job.

The ratio of CEO to the average workers’ wage in Australia has increased its gradually increasing share of the reserve created by the bosses employees. In the 1990s, Aussie bosses were paid only 17 times the workers compared to 55 of today.

Inside 2023-2024CEOs Australian Stock Exchange Companies benefited from a 14 percent increase in basic wages. In the same period, the general staff received only 5% increase. The message is that corporate Australia believes that bosses are more important than workers.

In the meantime, the Australians continue to fight a permanent life cost crisis and economic inequality has reached all times. height and other developed other developed nations. Real fees Stagnant in the secret The 2010s fell almost 5 percent in the four years following the pandem. Housing prices could not be reached so much that Australia’s hosting rate has been at the lowest level since 1954.

Senior leadership is important, but the idea that workers deserve the constantly growing awards of the workers when they erode wages cannot be defended both economically and politically.

Our national welfare should benefit everyone. Nevertheless, in the opposite direction, deeper to inequality, we are further progressing than justice and closer to the model represented by Musk and his great man mystical.

Zombie put it to rest

Although popular, the idea that history was shaped by the great men was criticized in his time and has continued to disregard since then. This is an example of a textbook. zombie theory; Although his security died a long time ago, he walks between us.

Although it is not supported by any evidence, when it comes to leadership zombie The great human theory straightens and serves the interests of the elites. Can also do attractive For savior followers who want to save them from their concerns about the future.

This is not just an economic failure; It is a cultural thing that is carried out in a small part with the legend that is both right and desirable to the increasing concentration of wealth among strong men.

It is time to stop romanticizing the legend of the great man and eventually leave these economic zombies to rest, so that Australia’s wealth can be shared fairly instead of stacking by those at the top.

https://www.youtube.com/watch?v=ndojf2lwgza

Carl Rhodes is a professor of business and community at Sydney Technology University. Five wrote book On the relationship between liberal democracy and contemporary capitalism. You can follow it on x/twitter @Profcarlrhodes.

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