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Tesla Aims to Link Musk’s Compensation to Hefty Financial Goals
Tesla Inc. proposes to tie CEO Elon Musk’s compensation as CEO of Tesla Inc. to breathtaking goals of hiking the company’s market value to $650 billion—more than 12 times its current worth—and annual revenue to $175 billion in 10 years.
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Tesla Inc. proposes to tie CEO Elon Musk’s compensation as CEO of Tesla Inc. to breathtaking goals of hiking the company’s market value to $650 billion—more than 12 times its current worth—and annual revenue to $175 billion in 10 years.
In the meantime, Musk will receive no salary or bonus. Instead, he will be offered a series of 12 phased stock options that are indexed to increases in the company’s market capitalization. The company also must meet revenue and pretax earnings targets along the way.
Tesla shareholders will vote in March on the highly unusual compensation plan. The scheme is constructed to ensure that Musk will remain in charge of the company and lead its transition from a low-volume niche player to a high-volume producer of electric vehicles ranging from sports cars to highway trucks.
Over the next decade Musk will continue as Tesla’s CEO, chief product officer or executive chairman. Tesla notes that the plan would enable the company to hire a new CEO who would report to Musk.
Bloomberg News says Musk’s current net worth is more than $21 billion. If successful, his new compensation plan could theoretically boost that total to nearly $77 billion.
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