Tesla CEO Elon Musk's Salary Just Dropped To $0
Is he a zero, or hero?
We've seen this a lot before. While on one hand, you'll have CEOs of companies rack up crazy salaries for themselves, you can also see CEOs taking note-worthy pay cuts to help push the company and better benefit employees. But to see the CEO of a powerhouse company like Tesla take this sort of pay cut, well, it's almost unheard of.
Tesla and CEO Elon Musk have just submitted a new, 10-year payment plan for Musk. The compensation plan is equal parts crazy. The goal is for the electric car company to grow to $650 billion in market value; as it stands the company sits at just over $60 billion.
Here's how it affects Elon. In this new plan, he receives no salary, no bonuses and no annual stock from Tesla. But should the company reach its goals, Elon Musk will receive approximately $55.8 billion dollars worth of stock. He'll also receive stock every time Tesla hits a milestone in growth; starting at $100 billion. Aka no sales targets? No pay.
So what's the problem with this? For Tesla to grow to $650 billion in market value, they'd effectively need to control the automotive industry - a feat that the company is far from doing right now. The company isn't even close to leading the industry in sales with GM, Ford, and Fiat Chrysler boasting seven-digit sales - compared to 76,000 from Tesla.
What's more, is that while it's a bold move for Musk to take this "pay cut", it doesn't mean that he's in any shortage of cash. Lets not forget his role in SpaceX, his ownership stake in Tesla, and the fact that he's already worth more than $22 billion. So while he's definitely not in need of a monthly paycheque, this move by both Musk and Tesla can only be seen as brave and brazen.