As of now he is actually paid 0 for last 4 years when Tesla stock has gone up by 900% (even after the recent stock slide).
People forget that if the stock price didn’t at least double and Tesla meet some manufacturing and sales quotas, Elon’s pay package would be 0. The only reason he’s getting paid 44B or whatever number is because the stock price has gone through the roof and the Model Y has become the best selling car in the US. On top of that, he is required to hold the stock for at least 5 years, so even if the judge didn’t invalidate his pay, he wouldn’t see any liquidity for at least 5 years.
You don’t need to like Elon to see that his pay package was completely fine. I doubt many CEO’s would accept a pay package where they don’t get paid a dime unless the stock price at least doubles, a very large number of CEO’s would also be paid 0 under such a pay package.
How does this not create perverse incentives? I have noticed that Musk has repeatedly made fraudulent claims about Tesla. I can't help but wonder how many of his fantastical claims are precisely in service of boosting the stock price. Also what exactly are the material consequences for him if he didn't get paid by Tesla? Essentially zero.
“Material consequences if he didn’t get paid by Tesla” sounds so scarily close to communism “To each according to his need, from each according to his ability”. It shouldn’t matter whether he needs it or not. It was an agreement that was made, an agreement I think was pretty fair and one that most corporate CEO’s in America today would not take but Elon took it, won that agreement and now people are balking up at payment. Promises made, promises kept or society does not function, “need” is the absolute last thing that should ever matter in this calculus
People forget that if the stock price didn’t at least double and Tesla meet some manufacturing and sales quotas, Elon’s pay package would be 0. The only reason he’s getting paid 44B or whatever number is because the stock price has gone through the roof and the Model Y has become the best selling car in the US. On top of that, he is required to hold the stock for at least 5 years, so even if the judge didn’t invalidate his pay, he wouldn’t see any liquidity for at least 5 years.
You don’t need to like Elon to see that his pay package was completely fine. I doubt many CEO’s would accept a pay package where they don’t get paid a dime unless the stock price at least doubles, a very large number of CEO’s would also be paid 0 under such a pay package.