Tesla CEO Elon Musk will now be paid nothing unless he increases his company’s market capitalization and the shareholders do very well.
Musk’s new compensation plan scraps any promise to hit vehicle production goals, which Tesla has always fallen short of.
An analyst predicted that Tesla could build 100,000 new Model S cars in 2018, versus 400,000 preorders.
LONDON – Tesla announced on Tuesday a new compensation plan for CEO Elon Musk, and he will not get paid a single dollar unless his company’s shareholders do extremely well.
But unfortunately for the 400,000 or so people who have preordered Teslas, Musk’s compensation won’t be tied to his companies ability to build cars.
Tesla has never hit a production goal in the history of the company. An analyst note from December projected just 100,000 Model S Teslas coming off the line in 2018.
Unlike other car companies, Tesla’s stock has continued to soar over 1,000% since its IPO in 2010.
Instead of focusing on building cars, like GM or Ford does, Musk’s new compensation schedule is “entirely contingent on achieving market cap and operational milestones that would make Tesla one of the most valuable companies in the world,” according to a press release.
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Source:: Businessinsider – Technology