WSJ What’s News – Episode Summary: "Elon Musk Returns to Business. How Much Should Tesla Pay Him?"

Release Date: June 2, 2025

In this episode of WSJ What’s News, host Alex Osulla delves into a range of pressing topics—from a federal hate crime charge in Colorado to intricate discussions on executive compensation, particularly focusing on Elon Musk's remuneration at Tesla. The episode also scrutinizes the Trump Organization's overseas expansion and investigates allegations against Asia’s second richest man, Gota Madani. Below is a detailed breakdown of the episode's key discussions, insights, and conclusions.

1. Colorado Flamethrower Attack and Political Reactions

Timestamp: 00:29 – 01:40

The episode opens with the troubling news of Muhammad Sabri Solomon, the suspect in the Colorado flamethrower attack, being charged with a federal hate crime. The attack targeted a group supporting hostages held by Hamas in Boulder, Colorado. Solomon, who was in the U.S. on an expired visa and had filed for asylum in September 2022, admitted to planning the attack for a year, timing it to occur after his daughter's graduation. Notably, all eight victims survived and remain hospitalized.

President Trump's Response: President Trump expressed his condolences on Truth Social, stating, “This incident is yet another example of why we must keep our borders secure and deport illegal anti-American radicals from our homeland” (02:00).

2. US Manufacturing Downturn and Stock Market Resilience

Timestamp: 01:40 – 03:37

The discussion shifts to the latest economic indicators, highlighting a decline in U.S. manufacturing activity. The Institute for Supply Management reported that the Purchasing Managers Index (PMI) for Manufacturing dropped to 48.5 in May from 48.7 in April, signaling continued contraction. This downturn underscores ongoing fears about the impact of the Trump administration's fluctuating trade policies.

Stock Market Update: Despite fears of a new trade flare-up between the U.S. and China, U.S. stocks rebounded from early losses, with the Nasdaq leading gains, rising approximately 0.7%, followed by the S&P 500 and Dow. This resilience suggests that markets are absorbing the tariff-related volatility, recovering most of their April losses.

3. Executive Compensation: Focus on Elon Musk

Timestamp: 03:37 – 07:00

A significant portion of the episode is dedicated to executive compensation, featuring insights from Jason Zweig, columnist for the Wall Street Journal's Intelligent Investor. Zweig addresses concerns about portfolio concentration, advising that for the vast majority of investors, having a substantial portion of their assets in a single stock (e.g., 85% in Nvidia) is ill-advised unless they possess exceptional stock-picking skills akin to Warren Buffett.

Quote by Jason Zweig: "One of the points that I made in this column is that there are two types of people who should concentrate their stock picks... Warren Buffett or Charlie Munger who have just extraordinary skills... or CEOs who have influence over the company’s future." (03:37)

4. Elon Musk's Return to Business and Compensation Challenges

Timestamp: 05:13 – 09:18

The episode transitions to Elon Musk's compensation at Tesla, highlighted by the fact that Musk was identified as the lowest-paid CEO among S&P 500 companies, earning $0 last year due to ongoing legal disputes over his pay package.

Teo Francis joins the discussion to analyze executive pay trends, noting that while overall CEO compensation has increased, the structure is increasingly skewed towards stock-based packages with complex conditions. Musk's previous multi-billion dollar package from six years ago involved numerous triggers that could potentially expand his stake depending on Tesla's performance.

Teo Francis on Moonshot Packages: "The concept of these moonshot packages really took off after Tesla gave Musk that one. So this kind of had a snowball effect where you saw a lot more of these moonshot packages after Elon Musk." (04:40)

As Musk returns to focus on Tesla after his stint in government, questions arise about how the company should compensate him moving forward, especially after his 2018 pay package was invalidated twice by courts. Teo Francis suggests that Tesla's board must balance attracting and retaining top talent with ensuring Musk's incentives align with shareholder interests.

Becky Peterson's Insights: Tesla investors are reportedly impatient, having already priced in much of the anticipated success. The lack of new products beyond the Cyber Cab and shifts at SpaceX towards ambitious dream programs without backup plans are sources of concern.

5. The Trump Organization's International Expansion Amid Ethical Concerns

Timestamp: 09:18 – 11:39

The conversation shifts to the Trump Organization's surprising increase in international projects post-2024 election, with 12 new ventures announced globally compared to just two during Trump's first administration. These projects, primarily in the Middle East and India, encompass hotels, golf courses, and mixed-use office spaces, mostly operating under licensing agreements.

Ethics Controversy: In January, the Trump Organization had established an ethics agreement to prevent direct business dealings with foreign governments. However, several of the new projects appear to contravene this agreement, leading to scrutiny from figures like Senator Christopher Murphy, who deems these actions as violations.

Brenna Smith's Report: "From his point of view, this violates the ethics agreement that the Trump Organization released." (10:54)

The Trump Organization counters by stating that it does not engage directly with foreign governments but operates through partners, maintaining a layer of separation.

6. Investigation into Gota Madani and Adani's Business Practices

Timestamp: 11:39 – End

The episode concludes with an investigation into Gota Madani, Asia's second-richest man, who is currently battling foreign bribery charges. U.S. prosecutors are probing whether Madani's companies imported Iranian liquefied petroleum gas (LPG) into India via Mundra Port, potentially violating sanctions. A Wall Street Journal investigation revealed that tankers frequently traveling between Mundra and the Persian Gulf exhibited behaviors typical of vessels attempting to evade sanctions.

Adani's Response: A spokesperson for Adani categorically denied any intentional sanctions evasion or deliberate trade involving Iranian-origin LPG, asserting they are unaware of any U.S. investigations on the matter.

7. Additional Notes: Bonus Episode on US Retailers and Tariffs

Before wrapping up, the episode mentions a bonus segment available in the feed, which explores how major U.S. retailers like Macy's, Target, and Best Buy are navigating President Trump's tariffs. This segment also examines their recent earnings reports to gauge the resilience of American consumers amid ongoing trade tensions.

Production Credits: The episode was produced by Anthony Banci with supervising producer Michael Cosmides.

Conclusion: Alex Osulla signs off by highlighting the multifaceted nature of today's geopolitical and economic landscape, emphasizing the interconnectedness of executive leadership decisions, international business ethics, and broader market dynamics.

Notable Quotes:

• Jason Zweig (03:37): "One of the points that I made in this column is that there are two types of people who should concentrate their stock picks..."

• Teo Francis (04:40): "The concept of these moonshot packages really took off after Tesla gave Musk that one..."

• Brenna Smith (10:54): "From his point of view, this violates the ethics agreement that the Trump Organization released."

This comprehensive summary encapsulates the episode's critical discussions, providing listeners—and those who haven't tuned in—with a clear and insightful overview of the major stories impacting business and politics today.