Tesla’s supervisory board passed the new 10 year bonus plan for Tesla CEO Elon Musk. If all goals are met, then Musk will become the world’s richest man.
The bonus is based on the experience of the past years. Tesla could increase its market value from 3.9 billion dollars (3.18 billion Euro) in 2012 to 52,4 billion dollars (42.4 billion Euro) 2017. Nine of 10 milestones were reached.
The bonus is issued in tranches. Reaching pre-defined milestones – among others an increase in value of 50 billion dollars (40.5 billion Euro) – will grant Musk each time 1.69 million shares. Each tranche is worth at today’s stock price 600 million dollars (486 million Euro). As a base the supervisory board took today’s market evaluation of Tesla, which is at 59 billion dollars (47.8 billion Euro). As a prerequisite Elon Musk has to stay CEO or at least be Tesla’s Chief Product Officer. Elon Musk does not receive a salary or cash bonus. Musk already owns a fifth of all Tesla shares.
But now comes the big knocker: Elon Musk receives his shares only then Tesla in 2028 is worth at least 650 billion dollars (526.5 billion Euro). Ten times of today’s evaluation and four times as much as the most valuable car company Toyota is worth.
Here is the full document.
This article has also been published in German.