The world’s richest man, Elon Musk, on Sunday encouraged the idea of a new compensation package for himself as the CEO of electric vehicle manufacturing company Tesla Inc TSLA.
What Happened: Musk took no salary from the company in 2022 or 2023. However, this is only because the CEO has taken no cash salary from the company since 2019, when he took $23,760 or minimum wage.
Musk, instead, holds shares in Tesla and options that grant him the right to purchase more at a fraction of the price if the company hits particular financial targets. However, Tesla confirmed early in 2023 that Musk had received the last remaining block of options granted to him under a 2018 pay package.
This implies that the CEO is presently not covered by any compensation package. Several Tesla enthusiasts and shareholders on X are urging the company for a package for the CEO. Many even claim that the CEO has been working at the company ‘for free’ since 2022 end.
This new package, a shareholder suggested, can come with huge goals in terms of increasing productivity or even high market cap targets.
“Elon Musk isn't Tesla's indentured servant. There is no current incentive comp plan. We would pay any other Tesla CEO! And they wouldn't do as good of a job as Elon Musk,” a Tesla investor wrote. “Give him a big huge goal—like making 10,000 Bots… and watch him achieve it!!
Musk responded to the post with a brief, “That would be nice.”
Why It Matters: Musk owns more than 411 million shares of the EV maker. He is presently the richest person in the world with a net worth of $230.2 billion as per Forbes‘s real-time billionaires list.
Tesla stock closed at $218.89 per share on Friday, up 17,000% since listing.
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