CEO Elon Musk to Achieve $650 Billion Valuation for Tesla in 10 Years
Tesla has announced a new 10 year CEO performance award for Elon Musk where he will receive no salary, bonuses or equity. Instead, he will be granted a 10-year stock options only if he meets 2 key milestones: To increase Tesla’s market capitalisation to $650 billion, and to meet operational milestones (increase revenue & adjusted EBITDA).
“ Tesla CEO Elon Musk to Receive no Salary for 10 Years “
For the 1st of 12 market capitalisation milestone, Elon must increase the current market capitalisation to $100 billion (market capitalisation of $57.62 billion as of 26/1/18). Subsequently, he needs to increase $50 billion in market capitalisation for each milestone to arrive at $650 billion after another 11 milestones, in 10 years. For operational milestones, he will have to meet targets for revenue and EBITDA.
Without any compensation, CEO Elon Musk performance is 100% tied to Tesla’s performance. At Tesla, all employees are also given equity. In 2012, a similar performance award was also offered to Elon Musk and he met 9 of 10 operational milestones. The CEO performance award was granted on 21st January 2018, after more than 6 months of consultation with Compensia Inc. Elon Musk and Kimbal Musk did not participate in the shareholder voting for the CEO performance award.
Tesla was founded in 2003 by a group of engineers in Silicon Valley who wanted to prove that electric cars could be better than gasoline-powered cars. With instant torque, incredible power, and zero emissions, Tesla’s products would be cars without compromise. Each new generation would be increasingly affordable, helping the company work towards its mission: to accelerate the world’s transition to sustainable energy.
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