Elon musk getting paid 700 million dollars in compensation since he doesn’t cash in his minimum wage checks from tesla as required by law.

Elon Getting Paid? Elon Musk’s Compensation Plan Explained | $700 Million Payout

1. Here are the Facts
– A lot of people rather have a salary and not just commission
– Because if you have one bad month, then you could be looking at no money that month
– However, for Elon, he is 100% commission and does not get a salary
( meaning that everything is about performance)

General Info:
– This was put in place back in 2018
– Which basically gave Elon the ability to buy 1.688 million shares of Tesla at $350.02 ( If he met the qualifications)
Now:
– Before you say, that’s but that’s almost 3x the amount of money Tesla is going for right now
– The idea is that he also has to hold on to the shares for at least 5 years before selling
– And not just that but what if tesla, would have gone down in value.

However:
– Not everyone Is happy with 700 million compensation plan for Elon
– Some shareholder is trying to contest it and basically say
– It’s excessive and way too much money.

2. The Details ( commission is not free and you have to earn it)
– So in order to exercise this option
– Elon needed to meet a certain performance for tesla
– Basically, you get paid on what you deliver

The Details: * in total there are 12 milestones ( market Cap and Revenues), and by his performance this year he unlocked one worth 700 Million – but every time he unlocks another one the reward goes up by around 50 million
– Average Market Capitalization of 100B: ( tesla is has a market cap right now of 154Billion)
– Revenues of 20 billion EBITDA ( Earnings before Interest, taxes, depreciation, and amortization) – 26billion currently

What does this tell you:
– That it’s definitely a source of motivation
– And its also making shareholders rich
– Just In 2018, the company was going for around 350 per share.

3. What I think
– The problem Tesla is very simple
– From the outside looking in
– It looks like theirs to much depending on Elon to make the Company great

For example:
– Apple: Tim Cook: If Tim got fired today or he left the company, the company would be fine
– Microsoft: Bill Gates: His no longer the CEO, but the company is still one of the best stocks
– Berkshire Hathaway: Warren Buffet and Charlie: The face of the companies but it’s not really them but actually values investing. SO in even when they are gone those ideas will remain.

However:
Elon Musk: Is the heart and the engine to Tesla and Space X, at least that what it looks from the outside
– I’m not mad about the compensation plan
– But I do think, the company should focus a lot more on the brand and less on the CEO.

It’s Unstable: When a Ceo says
– My stock is too high
– I’m taking the company private
– The world is a simulation

4. Overall
– Elon only gets paid if shareholders get paid and he also can’t sell for 5 years
– If you ask me, it’s a good way to keep CEO on his toes
– He only gets rich if shareholders get rich

Plus:
– He literally reinvests most of the money back into the company
– And if cash out then his other partner uncle sam will take a big chunk also. ( 20% max in California)

– His Share: 20.8% of the company ( around 38.6 Million Shares)

Oh: and btw Elon is not the only person getting paid in stock options
– Take a look at the directors

Articles: https://ir.tesla.com/news-releases/news-release-details/tesla-announces-new-long-term-performance-award-elon-musk
USA today: https://www.usatoday.com/story/money/cars/2020/05/28/tesla-ceo-elon-musk-compensation-salary-pay/5278971002/
Verge: https://www.theverge.com/2020/5/28/21273882/elon-musk-tesla-compensation-plan-stock-award-dollars
SEC: https://www.sec.gov/Archives/edgar/data/1318605/000156459020027321/tsla-def14a_20200707.htm

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