Elon Musk is already known for his ambitious bets, but the Tesla CEO is now gambling with his own net worth: Tesla announced Tuesday that it would pay Musk nothing for the next 10 years–no salary, bonus, or stock–unless the electric car company nearly doubles in value.
Before lauding Musk for his apparent selflessness, though, it’s worth noting that the billionaire, who has served as Tesla’s chairman since 2004 and as its CEO since 2008, has been getting along just fine despite never receiving a salary as long as he has been with the company. Indeed Musk, worth an estimated $21.5 billion, will once again refuse his annual paycheck of $56,000–California minimum wage–in 2018 and the decade thereafter.
Under the new payment plan, however, Musk could actually become much, much richer–and so could Tesla
To earn any compensation going forward, Musk must grow Tesla, whose current market capitalization is about $59 billion, to $100 billion in market cap, and also increase its revenues or adjusted earnings (before interest, taxes, depreciation and amortization, a.k.a. EBITDA) by at least 70%. That would satisfy the first milestone of the 12-level compensation ladder, allowing Musk to collect …read more
Source:: Fortune.com – Tech