Elon Musk's new salary terms tie him to Tesla for the next decade
His compensation is also 100 percent incentive based.
Today, Tesla announced a new compensation structure for its superstar CEO Elon Musk. It's a 10-year plan that involves achieving market and operational milestones to increase Tesla's values. This isn't about Musk getting even more money, though that's certainly important. It's that he's receiving no guaranteed compensation (no salary, in other words) -- everything is incentive based. And to maximize his earnings, he has to stay with Tesla for the next 10 years and ensure that the company reaches certain goals.
The milestones are divided into market cap and operational milestones. The first market cap goal involves increasing the market value of the company's outstanding shares by $100 billion. The following 11 milestones involve additional increases of $50 billion each, for a total of $650 billion. The operational milestones are a series of escalating targets designed to maximize Tesla's market cap growth. The company must meet all these goals in order for Musk to receive his maximum compensation.
"For vesting to occur when the milestones are met, Elon must remain as Tesla's CEO or serve as both Executive Chairman and Chief Product Officer, in each case with all leadership ultimately reporting to him," says the release. "This ensures that Elon will continue to lead Tesla's management over the long-term while also providing the flexibility to bring in another CEO who would report to Elon at some point in the future." In other words, this is Tesla's insurance that Musk won't leave Tesla for one his other projects, such as SpaceX and The Boring Company.
