Why Elon Musk’s Compensation Plan Wouldn’t Work for Most Executives
JANUARY 24, 2018
Tesla’s market value must exceed $100 billion by 2028, otherwise Musk receives nothing, with further targets at $150 billion, $200 billion, and so on up to $650 billion. The shareholder and societal value that Tesla creates is little different if the firm is worth $201 billion in 2028 than if it is worth $199 billion. The higher the stock price in 2028, the more these shares are worth – even if the actual number of shares is fixed. Mel Svenson/Getty Images.