Tesla CEO Elon Musk will be paid by the company if the company employees and it’s shareholders do extraordinarily well. The South African entrepreneur will not receive a salary or any bonuses until his electric car company reaches its first market cap mile stone of a 100 Billion Dollar.
Musk will reportedly be paid in stock options. This will last over ten years in a series of 12 tranches. To secure each, Musk must reach a pair of milestones, one related to Tesla’s market value and the the other to its revenue and profitability. With every tranche that is achieved, the market value goes up by $50 billion. If he can hit all 12 targets and grow Tesla’s current value of $59 Billion to $650 Billion, then his stock award could be worth of $55 billion.
Due to Elon Musk’s clear vision and goal in making any model a worthy success, hundreds of thousands of people put down $1,000 deposits for the Model 3 in 2016, more than a year before they heard its specs, saw its interior, or knew its final price. Because of his empowering identity, the company believes that setting a target of $100 billion is possible for Musk. As a struggling startup, it made it through the 2008 financial crisis that had stopped their funding from VC and lost in their auto sales.
Musk makes all ends meet to obtain success and has made sure to create a stable, reasonably profitable business. The company said in a statement that the over goal will place Tesla with other giants like Alphabet and Apple. The deal ties his salary for performance and profit. This also ensures that the 36 years old will continue to lead Tesla over a very long term.