Why my children won’t inherit my companies-Elon Musk
Elon Musk, the CEO of Tesla Inc. and SpaceX, is strongly against the concept of passing down wealth to undeserving children.
“I am definitely not of the school of automatically giving my kids some shares of the companies, even if they have no interest or inclination or ability to manage the company,” he said. “I think that’s a mistake.”
According to Musk, executives should refrain from transferring their shares to offspring who lack the interest or ability to effectively manage the companies.
Instead, Musk advocates for a merit-based approach, suggesting that it is wiser to hand over leadership to deserving individuals within the organization rather than simply bestowing shares upon heirs who may lack genuine passion for the business.
Musk’s perspective on empowering capable individuals rather than relying solely on inheritance resonates as a sensible approach.
During an interview at The Wall Street Journal’s CEO Council, the billionaire CEO revealed that he has already identified competent successors who could take over his companies if necessary. He strongly opposes the idea of executives passing on their businesses or voting shares to their children without considering their qualifications. Musk believes in meritocracy and argues that leadership positions should be earned based on individual competence rather than relying solely on family ties or inherit
Musk has distinct relationships with each of his 10 children. While he often includes his 3-year-old son X AE A-XII in public events and even granted him a special Twitter badge, not all of his children share the same level of closeness with him. His eldest daughter recently expressed her desire to change her name, indicating her intention to create some distance between herself and her father as well as the associated public image.
The complex dynamics within Musk’s family highlight the uniqueness of his reasoning.
