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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

Musk knows that one of Tesla’s biggest competitive advantages is the patience and long-term thinking not only of management but also of its investors. For Tesla to reach a $650 billion valuation by 2028, the market will have to shift dramatically, with electric vehicles becoming the overwhelming percentage of all new sales.