Elon Musk commits to Tesla for long haul in new pay plan
0Elon Musk commits to Tesla for long haul in new pay plan.
Billionaire Elon Musk set a series of aggressive growth targets at Tesla Inc that would make the electric carmaker one of the world’s most valuable companies within the next decade, and assured shareholders he’ll stick around by tying his compensation to those goals.
The unprecedented pay package proposed Tuesday ties the 46-year-old chief executive officer’s personal wealth to that of shareholders – he won’t get paid unless the stock rises. It envisions a staggering increase in market value to $650 billion that would put Tesla in the league of tech giants like Google parent Alphabet Inc and Microsoft Corp, now more than 10 times its size. Revenue would expand to $175 billion, ahead of General Motors Co.
The move assures investors that Musk will lead Tesla through its next phase of rapid growth despite his many other commitments and interests. He is also the chief executive officer of Space Exploration Technologies Corp and has embarked on several other ventures including OpenAI, Neuralink and the Boring Co.
Under the plan, which requires shareholder approval in March, Musk’s pay is tied strictly to stock performance and profit. He will receive no salary or bonus. A 10-year grant of stock options vests in 12 tranches that are linked to market capitalization in $50 billion increments, starting at $100 billion. There are also milestones tied to revenue and adjusted earnings before interest, taxes, depreciation and amortization, Tesla said in a statement.