Tesla will pay Elon Musk only if he meets company goals

[Greg S]

After setting all kinds of new trends as an eccentric CEO, Elon Musk is taking on a new battle of his own. Under a new compensation agreement, Musk will receive no regular pay beyond the equivalent of a full-time, minimum wage employee in the state of California. All additional compensation will be based on company performance over the coming years.

Tesla must reach a market value of at least $650 billion within the next decade for Musk to cash in on all of the available options. This would place Tesla as one of the top five most valuable businesses globally. Musk must remain as the acting CEO of Tesla or become executive chairman and chief product officer for the deal to remain valid. It is possible that a new CEO could be brought in and report directly to Musk.

Currently, Tesla is approaching a $60 billion market cap. Musk will receive his first stock options once Tesla reaches $100 billion and vest more for every $50 billion in additional value that Tesla gains. In the end, Musk is able to earn up to 1.69 million shares of stock worth up to $55 billion. Should Tesla fall short on goals, total compensation could be just $37,000 annually in standard wages required by state law.

Considering that Elon Musk is already a billionaire, the compensation is not the only reason keeping him involved in so many projects. From SpaceX and Hyperloop to The Boring Company, there are plenty of other projects to keep the entrepreneur busy. Perhaps one of the reasons for Musk's desire to amass more capital is to help fund additional space travel efforts.

Permalink to story.

https://www.techspot.com/news/72898-tesla-pay-elon-musk-only-if-meets-company.html

 

[ZackL04]

Time for us to invest too?

 

[Uncle Al]

I currious to see who actually sets these "goals" and if they are subject to change .....

 

[JaredTheDragon]

Fair work for fair pay, and considering he's done absolutely zero work at Tesla... Overpaid.

 

[MilwaukeeMike]

I currious to see who actually sets these "goals" and if they are subject to change .....

The board of directors sets goals like this... and they could fire Musk if they thought he were screwing up. that's who fired Jobs from Apple way back when.

Also - deals like this aren't uncommon. Reed Hastings, the CEO of Netflix, made like $1 million in cash and $22 million in stock options in 2016. And almost all CEOs of public companies have some part of their pay tied to the company's performance. It's a good way to incentivize them.

Musk is already super-rich - he still has loads of money from Paypal I'm sure. He also has a ton of Tesla stock already and it's trading at $350, which is very high. To put it another way - he probably won't even notice he doesn't have a salary.

 

[ZackL04]

Fair work for fair pay, and considering he's done absolutely zero work at Tesla... Overpaid.

Dont kno much about Musk, is he like Jobs and walks into the engineering room and tells them to make his ideas come to life?

 

[CrazyDave]

I currious to see who actually sets these "goals" and if they are subject to change .....

The board of directors sets goals like this... and they could fire Musk if they thought he were screwing up. that's who fired Jobs from Apple way back when.

Also - deals like this aren't uncommon. Reed Hastings, the CEO of Netflix, made like $1 million in cash and $22 million in stock options in 2016. And almost all CEOs of public companies have some part of their pay tied to the company's performance. It's a good way to incentivize them.

Musk is already super-rich - he still has loads of money from Paypal I'm sure. He also has a ton of Tesla stock already and it's trading at $350, which is very high. To put it another way - he probably won't even notice he doesn't have a salary.

From what I've read, Musk basically blew his entire fortune setting up and funding his existing companies. SpaceX had him on the brink of bankrupcy. What he has now, is from his current success with his current ventures. His X/Paypal money was a stepping stone to where he is now. Like him or hate him, he is a successful guy and has made his fortune twice now.

 

[CrazyDave]

Fair work for fair pay, and considering he's done absolutely zero work at Tesla... Overpaid.

Dont kno much about Musk, is he like Jobs and walks into the engineering room and tells them to make his ideas come to life?

Pretty much, difference being that he actually has a lot of technical background, so he should have a technical knowledge of what can be done, and how. I believe he is quite demanding in what he expects of his people. Late shifts/double shifts, overtime is all part of the expectation with Musk. He expects his people to be in it for the love of what they do, and the motivation to taking on the challenge, the money is just a side aspect. Is that right? depends who you ask. Would I work for him?, no chance.

 

[ZackL04]

Pretty much, difference being that he actually has a lot of technical background, so he should have a technical knowledge of what can be done, and how. I believe he is quite demanding in what he expects of his people. Late shifts/double shifts, overtime is all part of the expectation with Musk. He expects his people to be in it for the love of what they do, and the motivation to taking on the challenge, the money is just a side aspect. Is that right? depends who you ask. Would I work for him?, no chance.

Well I guess thats how you lead innovation, you need passionate work force as well.

Like you I wouldnt be working there, I dont think im passionate enough about anything to work my life away.

 

[Joe Blow]

Since the global warming scam didn't quite work out and there's practically an unlimited amount of abiotic oil (no, it's not "fossil fuels"), there no reason why Tesla should really succeed. We don't need electric cars. Gasoline is just fine. They need to find some rational excuse for people to keep buying these all electric contraptions.