Compensation includes no salary or cash bonus
Shareholders of Tesla Inc have approved a new 10-year compensation plan potentially worth $2.6bn for their Silicon Valley billionaire CEO, Elon Musk.
The compensation includes no salary or cash bonus, but “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 its shareholders do extraordinarily well.”
This means that the new package is dependent on the electric car company hitting certain milestones in the coming years, including ushering Tesla to an astronomical market valuation of $650bn the next 10 years.
Excluding votes by Musk and his brother Kimbal Musk, the measure was passed with about 73 per cent of votes cast, Tesla said in a Securities and Exchange Commission filing.
Musk could own as much as $55.8bn in Tesla stock and more than a quarter of the electric car company in the next decade if he hits all targets of the new plan.