If Elon Musk makes sure Tesla keeps growing over 10 years?by the numbers that matter to investors?he could emerge the wealthiest person in the world.
Under a new compensation plan for Musk, the CEO’s compensation will be based entirely on the financial performance of the company. ?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 announced as part of a plan that is contingent on the approval of shareholders in late March.
The plan was patterned after a similar one that was put into place for Musk in 2012?one for which Musk ended up meeting nine out of 10 milestones that included development targets for the Model X and the Model 3. This time the 12 milestones, over 10 years, are entirely rooted in financial targets?for market capitalization and for operational milestones including revenue. The plan does leave room for a separate Tesla CEO to be appointed below Musk. And it adjusts the milestones upward if Tesla acquires other companies or downward if it spins off areas of its business as new companies. And it claims to create almost $600 billion in shareholder value at the end of the 10-year period.
What?s in it for Musk" One element is that he?ll be able to use his shares in Tesla to back loans for other ventures. Musk can?t actually sell any of his shares for five years after exercising the options, though. The package is projected to be worth about $55.8 b...