Mexican Media Brands
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.
#economics
Share
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.
RELATED CONTENT
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.