Tesla’s board has proposed a compensation package for CEO Elon Musk that requires a market cap of $650 billion.
The company’s current market cap is about $60 billion.
Tesla has rarely made money in 14 years and would have to take over the auto industry to make this proposal worth it.
Ahead of its annual shareholder meeting in March, Tesla announced Tuesday that over the next ten years it wants to pay CEO Elon Musk entirely in stock and tie his compensation to the company, increasing its market cap to $650 billion from about $59 billion at present.
“Elon will receive no guaranteed compensation of any kind — no salary, no cash bonuses, and no equity that vests by the passage of time,” Tesla said in a statement filed with the Securities and Exchange Commission.
“Instead, Elon’s only compensation will be a 100% at-risk performance award, which ensures that he will be compensated only if Tesla and all of our stockholders do extraordinarily well. The award consists of stock options that vest only if Tesla achieves specific milestones, which if fully achieved would make Tesla one of the most valuable companies in the world with a market capitalization of at least $650 billion — …read more
Source:: Businessinsider – Technology