Elon Musk to stay Tesla CEO for ten more years
Tesla has renewed the contract with CEO Elon Musk, consisting of a 10-year grant of stock options. Just like before, Musk will not get any continuous salary or bonus – his compensation depends solely on the company’s performance.
According to Tesla, this compensation will be orientated towards market capitalization and operational milestones: “The performance award consists of a grant of stock options that vests in 12 tranches. Each of the 12 tranches vests only if a pair of milestones are both met.”
And these milestones are indeed ambitious: For Musk to reach his first target, Tesla’s current market cap of around 59 bn dollars must increase to 100 bn dollars and in the long term to not less than 650 bn dollars. When it comes to operational targets, Tesla must meet a set of escalating Revenue and Adjusted EBITDA objectives.
The new performance award was created by Tesla’s Board of Directors and is similar to the structure of Musk’s last compensation award agreed on in 2012.
reuters.com, forbes.com, ir.tesla.com
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