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Elon Musk To Stay At Tesla For Another Decade (arstechnica.com)
Thelasko writes: "On Tuesday, Tesla's board announced that it had convinced Musk to stay at the helm for another decade with a truly gargantuan performance-based pay package," reports Ars Technica. The pay package is in a series of 12 milestones based on market capitalization.
[The report notes the possibility that Musk could get nothing for a decade's work as Tesla's CEO if the company's stock never rises above $100 billion. However, Musk will get awarded with $1 billion -- 1 percent of the company's stock -- if the stock reaches a value of $100 billion and the company either achieves revenues of $20 billion or earnings of $1.5 billion.] "If the stock rises to $150 billion (and Musk reaches another revenue or profit target), Musk gets another 1 percent of the stock, which will be worth $1.5 billion," reports Ars. "That pattern continues in $50 billion increments until Tesla's stock rises above $650 billion -- at which point Musk will get a stock award worth $6.5 billion. Musk's stock awards will total $45 billion if he hits all 12 milestones."
I guess Musk will have to wait to move to Mars until 2028...
[The report notes the possibility that Musk could get nothing for a decade's work as Tesla's CEO if the company's stock never rises above $100 billion. However, Musk will get awarded with $1 billion -- 1 percent of the company's stock -- if the stock reaches a value of $100 billion and the company either achieves revenues of $20 billion or earnings of $1.5 billion.] "If the stock rises to $150 billion (and Musk reaches another revenue or profit target), Musk gets another 1 percent of the stock, which will be worth $1.5 billion," reports Ars. "That pattern continues in $50 billion increments until Tesla's stock rises above $650 billion -- at which point Musk will get a stock award worth $6.5 billion. Musk's stock awards will total $45 billion if he hits all 12 milestones."
I guess Musk will have to wait to move to Mars until 2028...
Those government subsidies won't lobby for themselves.
of Tesla compared to companies like say BMW, that actually sells more electric cars, makes a profit on them and such...
So for Tesla stock value at least Elon Musk has been great.
In order to be a true dreamer, leader and entrepreneur. To build something no one else could even envision, all the in the know people will think your nuts ;) While I don't see a future in some things he proposes others definitely have merit ;)
;)
;)
The board made the call, good for him
Just my 2 cents
What sort of incentive system relies only on revenue?
So Musk manages to get the company up to $20bn in revenue, but to do it creates losses of $30bn, and he still gets the stock? That's ludicrous.
"Managing" does not suffice. Teams actually work better without managers. Especially with good team software.
"Deciding" also isn't more than "picking" what your experts told you.
And in any case, what exactly is that work, that is so extremely skilled, that you get roughly $48,000 AN HOUR for it?
Cause to me, this looks like the most overrated type of job in human history. ... well ... practically nothing, except in order to make sure you don't have to do anything in the future, by getting others to do it ... Act very busy, like you're the hardest working one because you're on top of a thousand actual hard workers Rake in literal truck loads of money.
Do
Only banking is better, because you get to make up at least 92% of "your money" too.
When each and everyone of your senators and congress people is basically a lobbyist for the corporations he has "strong ties" to (and came from, before) (and gets hired at, after) (and meets with all the time, to discuss plans) ... but the same thing doesn't happen to whatever groups we consider ourselves part of (Like the group of people who give a shit about human rights, or anything besides profit for profit's sake.) ... then there is no such thing as a US government in any sense that you and I mean.
I'm not saying that corporations, like any organization, can't represent their interests. I'm saying that that they have taken away our right to represent our interests. (Aaand cue me promptly getting downmodded into oblivion, for siding with those that do said modding.)
But yeah, if you want to, you can call a corporate (or whatever) oligarchy a "government" ... and call a dictatorship a "government" too. And I would disagree, on the grounds, that joint-venture of human stockman is a much more appropriate term.
10 years, 45 billion and head of a spaceship company? That's seriously doable. If anyone has ever been in a position to fly themselves to mars he sure is.
Certainly Elon Musk is already rich enough that any potential compensation really doesn't matter. So why offer such ridiculous sums?
And hence make our living without pillaging the American taxpayer.
"I guess Musk will have to wait to move to Mars until 2028..."
What, he can't telecommute?
so how far are these metrics today? and does he still get paid something every month or just waiting to see in 10 years?
I wonder what moonlighting clause the compensation package has. Musk is "moolighting" with SpaceX and The Boring Company already and probably others I don't keep track of. So what does Tesla get? 30%?
It's not often you see an executive who doesn't have a Golden Parachute.
This is cool. I wonder what he has planned?
In a world of the blind, the one-eyed man is king--and the two-eyed man is a heretic.
The only problem is that Tesla is not going to survive another ten years. They're haemorrhaging money and there is no realistic path towards profitability anytime soon.
Seriously, that's the situation Tesla is in. They need someone with the vision to keep moving because if they stop - dead.
That's not an insult to Elon, but you only have to look at any number of large companies that have lost the plot and faltered to get some idea of why they want to keep him.
10 years is a long ways off. It's hard to say what Tesla will look like then.
Will it be a car or energy company, or something else?
How to you measure progress when you are not sure of it's direction?
This highlights that even for Tesla, counting money is how the game is scored.
Typical boardroom stuff, but one would have hoped for better.
The problem with using the stock price as a metric puts focus on the often illogical stock market and dilutes focus from the company's ability to make useful things and their market acceptance. It tends to nudge the company to doing illogical things. They did logically combine this metric with (revenue or profit) which helps. They did not put in a balance sheet metric.
You get what you measure, so what are other alternatives for a metric?
I guess Musk will have to wait to move to Mars until 2028
NO reason headquarters can't be on Mars. Maybe he'll be the first to use the based on Mars tax avoidance loophole!
"For every expert, there is an equal and opposite expert"
If the article, as you wrote it here, is correct. Musk would get 78 billion if he hits all his milestones. Yes, he would be worth 1 billion after the first milestone, but at the second, he would be worth 3 billion. He would have 2% of the company now worth 150billion, or 3 billion for himself. If he hit all 12 milestones he would have 12% of the 650 billion, 78 billion dollars. This isn't 1 billion + 1.5 billion + 2 billion and so on, it's 1%, then another 1% then another 1% and so on.
...fully integrated equity and debt issuing company.
Frankly, I don't see how Musk will ever capitalize on the full award given the never-ending cash-burn, and constantly receding break-even horizon. If the capital markets dry up, Tesla will go out like a perforated lithium battery.
Better than some executive pay packages where the company is downsized/destroyed then sold off for scrap while the CEO collects nearly $200 million in bonuses. Marissa Mayer, I'm talking to you.
Organization? You must be joking..
Why isn't his pay tied to Tesla profit (p.s. they don't have any) instead of market cap which is based on fluff and marketing?
Tesla has had few profitable quarters in its entire history. In 2017. It had billions in losses every year since 2014. 2016 and 2017 were the two worst years ever. Pay tied to market cap is a scam and shareholders should be outraged.
FYI, Enron had a market cap of about $60 billion right before they went bankrupt.
Now if he will only keep his lunatic ideas to himself for the next ten as well.