Last year, billionaire entrepreneur and Tesla Motors cofounder saw its CEO position rewarded with only around $70,000 – in stark contrast to what he earned in 2012.
The Palo Alto, California-based company that manufactures the luxury electric Model S sedan disclosed in a filling that its 42-year-old co-founder, Elon Musk, received in 2013 just $69,989. Before you lament his earnings – which compares to a $23.2 million package for Ford’s CEO Alan Mulally, you should note that Musk accepts $1 a year for his services at Tesla, while the company also has to pay him a cash compensation of $33,280, in line with California’s minimum wage requirements.
The catch here is that, besides being anyway a billionaire from his other businesses, in 2012 Musk received no less than $78.1 million, albeit in stock options – part of a performance-oriented option that matures over a decade.
Musk holds a 23 % stake in Tesla, which makes him the biggest shareholder, but is also chairman of SolarCity Corp and runs the Space Exploration Technologies Corp. – together his holdings bring him a net worth of around $10 billion.
Also, the 2012 compensation is part of a 10 years term, in which the company needs to achieve specific goals for Musk to gain possession of the full amount – including taking the market capitalization from $3.9 billion at the end of 2012 to $43.2 billion by 2022. The current value of the company is of $25.8 billion – and Musk also introduce during his run two new models, the Model X SUV, a more affordable sedan and reach annual production of 300,000 vehicles.