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Why Elon Musk’s Compensation Plan Wouldn’t Work for Most Executives

Harvard Business

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.

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Elon Musk’s Unusual Compensation Plan Isn’t Really About Compensation at All

Harvard Business

When I presented that thesis to a room of executives, including in the automotive industry, four years ago, most of them said that this scenario is at best 20 years away, that “Tesla would never be able to produce a solid car,” and that “Lyft and Uber are just for Millennials.”