India, Nov. 28 -- It is clearly compounding. It is cruelly confounding. It is cleverly confusing. Tesla's compensation package for Elon Musk, which was approved by the shareholders, defies logic and rationale of what to pay CEOs. A maximum of $1 trillion if Tesla possibly becomes the largest in the world in terms of valuations. To put the figure in perspective, the current market cap of the company is $1.3 trillion, or almost the same as Musk's future compensation. The latter is almost five per cent of Reliance Industries' current market cap.

The shareholders' approval signals a shift as the value of a business leader, along with his vision, and ambition is being priced on the same scale as national economies. It is a pay structure that ...