Tesla will pay Elon Musk's salary only after its value increases by $100 billion

Tesla founder and CEO Elon Musk will no longer receive a fixed salary. He will be paid only if Tesla rises in price by at least $50 billion every year.

• Musk was offered a 10-year option program divided into 12 tranches, each corresponding to 1% of the company's shares. Now the founder of Tesla owns about 20% of its shares. With the current capitalization of 1%, Tesla is worth $590 million, in case of growth by $100 billion, this package will cost $1.6 billion.
• Musk will receive the first additional 1% of the shares when the capitalization of his company increases by $ 100 billion, and the next 11 parts - each time as the value of Tesla grows by the next $ 50 billion. Now the company is worth about $ 59 billion, over the past year it has risen in price by 46%.
• This is how the company expects to motivate the CEO to raise Tesla's capitalization to $650 billion from the current $59 billion. All employees depend on Musk's success, since everyone owns Tesla shares.
• The plan was developed by the Tesla board of directors, but Musk himself, who serves as its chairman, did not participate in the work on the scheme of his own remuneration.
• Tesla did the same experiment with Musk in 2012. The CEO only received $4 billion in stock options when the company's value increased. He completed most of the plan.

What do I get from this?

Even the founder of Tesla needs extra motivation to do a good job - and Musk's stepping back from designing his own salary scheme is a good example for Russian CEOs.

Marina Bocharova, The Bell