Tesla announced on Tuesday that its chief executive officer Elon Musk will only be paid if the company reaches certain valuation and operation milestones.
Jan. 23 (UPI) — Tesla said Tuesday that its chief executive officer Elon Musk will only be paid if the company meets certain valuation and operation milestones.
The $59 billion company has set a series of targets that if met, could provide tens of billions of dollars in compensation to Musk.
« Elon will receive no guaranteed compensation of any kind-no salary, no cash bonuses, and no equity that vests simply by the passage of time, » the company said in a statement.
Instead, the CEO will only be paid if all of its shareholders do « extraordinarily well. »
According to the statement, the plan would deliver vested stock to Musk in increments as the company approaches $650 billion in market value. Beginning with $100 billion and ending with $650 billion, each time the company’s market capitalization increases by $50 billion, Musk will be awarded shares.
At $650 billion, Tesla would be worth twice as much as Walmart and more than Facebook.
If all benchmarks are met, the CEO could own $55 billion in stock. The plan is conditional, only if Musk remains CEO or becomes executive chairman and chief product officer.
