Tesla CEO links to long-term growth of the company
The founder of well-known and popular electric carmaker Tesla, Elon musk has promised to release a new salary package, which is based on it becoming one of the world’s most reputed companies. His pay will be associated with the growth in the stock market value of Tesla that starting at $ 100bn and increased to $650bn.
In order to receive a large number of remuneration, Tesla will now value at $60bn and then it would have to be 6 times bigger than rival Volkswagen. And in the market value of Tesla, Elon Musk’s pay will also be connected to 12 revenue as well as profit growth.
In the month of March, this plan needs to be signed off by the shareholders in a vote.
Elon Musk reveals about long-term pay to Tesla’s growth.
This proposal is similar to Musk’s last salary package structure, which was released in place in the year 2012. Under that plan, the Tesla CEO was awarded stock options which vested only if the firm continued to do well and reach the expected milestones.
The entrepreneur of polymath has told that, several times before that he’s not driven by money. And thus in the year 2016-17, Tesla expects to pay him about $49,290, but he said that he doesn’t cash the cheques. Instead he made loans against his shares value which is around $11.8bn.
But now, it’s looks like a new plan of Tesla is quite a challenge. The carmaker firm continues to lose money & last year it was leaking almost $500,000 an hour.
It’s future revolves on the Model 3 sedan, but the carmaker has struggled to increase its production of the most affordable electric vehicle in its range. The firm earned only 260 in the 3rd quarter of previous year and hence it called as production bottlenecks, when it had planned to develop over 1,500.
Unlike Musk’s previous deal, his proposed remuneration plan does not include vehicle output targets.
But, if he hits only a few of proposed milestones, then he will surely make billions in his shares value.
If the CEO of Tesla succeeds in hitting his benchmarks, the employees of company including those who work on the factory floor, who get salary in both cash & stocks, could become wealthy.