Bengaluru — Tesla said on Tuesday that CEO Elon Musk will receive no guaranteed compensation of any kind, and that he will be paid only if the company and all of its shareholders do extraordinarily well. The compensation will be based on a combination of market capitalisation and operational milestones, the electric-vehicle maker said in a statement. "Elon will receive no guaranteed compensation of any kind — no salary, no cash bonuses, and no equity that vests simply by the passage of time," the company said. The new performance award consists of a 10-year grant of stock options that vest in 12 tranches, with each tranche vesting only if both market capitalisation and operational milestones are met, the company said. Tesla said its market capitalisation must increase to $100bn for the first tranche to be vested and must continue to increase in additional $50bn increments. "Thus, for Elon to fully vest in the award, Tesla’s market cap must increase to $650bn," the California-based c...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now