1. Elon could quit and do zero work and he would still own the 12%. So what is his compensation for the extra work?

2. If you owned $10M worth of shares of TSLA from your personal investments, and applied to work at TSLA, would it be reasonable to deny you any compensation since you are already incentivized and share in the success?

This is not to comment on what the right pay package is; perhaps the proposed one is far far too rich, but that's a separate question to whether his existing assets are compensation or not.