Here's why Elon Musk doesn't want his children to take control of his companies

Elon Musk, the world’s second richest individual and the CEO of Tesla, SpaceX, Twitter, and other ventures, recently shared his views on succession planning and his children’s involvement in his companies. In a recent statement, Musk expressed his concerns and outlined his vision for the future of his businesses.

In a conversation with the Wall Street Journal (WSJ), Musk delved into his succession plans, and disclosed his reservations about handing control of his businesses to his children. Succession planning has long posed a significant challenge for Musk, who acknowledged that it is a perennially difficult problem.

Musk also stated his belief that giving his children shares in the companies, regardless of their interest or ability to manage them, would be a mistake.

“I am certainly not in favor of automatically granting my kids a share of the companies, even if they lack the interest, inclination, or ability to run them. I think that would be a mistake,” he said, according to WSJ.

Instead, Musk proposed the concept of establishing an educational institution that would hold control over his voting shares. This approach aims to address the complex issue of succession and ensure that capable individuals are appointed to executive positions in unforeseen circumstances.

Additionally, Musk claimed that he has already identified potential successors and shared his recommendations with the boards of his companies. “I have identified specific individuals to whom I have said, ‘If something unexpected happens to me, this is who I recommend taking over,’ So in all cases, the board is aware of my recommendations,” reported WSJ.

Musk’s emphasis on meritocracy could also lead to the possibility of his children not inheriting his wealth.

Despite having nine children, including his three-year-old son X AE A-XII, whom he often showcases at events, Musk believes that inheritance should be based on interest, capability, and inclination rather than solely on familial ties.

With inputs from agencies

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