Tesla’s shareholders have voted to approve a new 10-year compensation plan for CEO Elon Musk valued at around $2.6 billion( N936b )in stock options.
Musk won’t get the full value in one-time payment , and he might not even get all of it. The compensation is dependent on the company hitting certain milestones in the coming years, including whether or not Musk can take Tesla to an astronomical market valuation of $650 billion in the next 10 years ,an amount that would be more than 10 times the company’s current value of around $59 billion.
Once Tesla reaches a market valuation of $100 billion, Musk will be awarded one-twelfth of the total stock options package. Each time Tesla’s market valuation grows $50 billion beyond that, he’ll be awarded another same-sized slice of the stock options. There are also 16 operational milestones that have to do with specific revenue and profitability targets, though up to 12 of those can be tied to the market cap goals.
If he receives the full benefit, Musk could wind up owning a 28 percent stake of Tesla, which could be worth nearly $200 billion. Musk, who is estimated to be worth $20 billion, currently doesn’t make a salary at Tesla. The company makes a California-mandated minimum wage salary available to him, but he has not accepted it.