Core Concept - The article discusses the rise of "moonshot" pay packages for CEOs, which tie compensation to ambitious long-term performance goals, potentially transforming leadership incentives and corporate risk-taking [1][4][6]. Group 1: Moonshot Pay Packages - The concept gained attention from Elon Musk's 2018 Tesla deal and has been exemplified by Rick Smith, CEO of Axon Enterprise, who accepted a compensation structure with minimal salary and no bonuses, contingent on achieving a tenfold increase in market cap over a decade [2][4]. - Smith's unconventional pay structure resulted in significant success, as he became the highest-paid CEO in America in 2024 with $165 million in compensation, following a stock surge of over 600% [3][4]. Group 2: Advantages and Controversies - Advocates argue that moonshot packages align executive interests with shareholders, promote long-term thinking, and create urgency for transformation [4][5]. - However, these plans face criticism for their volatility, calibration difficulties, and potential unpopularity among investors concerned about excessive payouts and asymmetric risks [4][5]. Group 3: Future Implications - The model is gaining traction as extraordinary results are believed to require extraordinary incentives, particularly in a market focused on innovation and high valuation multiples [5][6]. - The long-term impact of these moonshot pay structures on corporate value remains uncertain, representing a new frontier in corporate governance that intertwines pay, purpose, and performance [6].