Elon Musk is doing volunteer labor for Tesla, at least for the time being.
Musk Works for Free
Tesla continues to have the potential to bring in spectacular amounts of cash for Musk; although not in the same manner that his regular employees do.
This is because the CEO hasn’t earned cash income in any form since 2019 when he was merely given the minimum pay of $23,760, as mandated by California law.
With attractive stock option bundles that granted him the opportunity to purchase hundreds of millions of stock shares for a minuscule portion of their market rate, if the business reached specific economic and financial value targets, Musk rose to become one of the wealthiest people in the world.
His 2012 bundle of choices ended in 2022 after he had been given nine of ten sets of possible choices.
Additionally, the business revealed last month that Musk had been granted the final set of options granted as part of a significantly more costly 2018 compensation plan.
Elon Musk Works for Tesla for Free – but Thanks to a Highly Unusual Compensation Plan He Could Earn $100 Billion https://t.co/XwobYUsDSo pic.twitter.com/mYZVVHA4ol
— Life's Prism (@LifesPrism) December 18, 2019
Hence, regardless of how successful Tesla is, Musk won’t be expanding his portfolio any time soon.
Of course, he doesn’t require assistance from a GoFundMe page to cover his expenses. After all, according to a current assessment by Forbes, he seems to be the second-richest human on the planet, trailing only Bernard Arnault, the leader of the premium brand conglomerate LVMH.
Musk has a combined wealth of around $198 billion, which would allow him, should he choose, to once more massively overpay for Twitter.
His value increases as Tesla performs well under his direction. He already owns 412 million shares of Tesla stock altogether and has the choice to purchase an additional 304 million shares for just $23.34 each.
Friday saw a closing price for Tesla of $208.31.
Mr. Musk You are the best. Thank you standing up for free speech. My brother-n-law works for you in Maryland. He loves working for Tesla. He got real sick and you stuck by him all the way. I wish more companies would do that for their employees.
— Timothy Coppersmith (@Timcopperhead68) April 15, 2022
According to Friday’s closing, the price of those stocks and choices, after accounting for the alternative exercise price, is $142 billion. While the price of such shares fell by 65% in 2022, Tesla stocks have neatly recovered, rising 69% so far in 2023, adding $61 billion to Musk’s net wealth.
Yet, some think the Tesla board will shortly reveal Musk’s new compensation plan.
It’s anticipated that an extraordinarily massive payout is coming to Musk as he is the lifeblood of the company. This is according to Daniel Ives. Ives is an analyst for Wedbush Securities.
Musk Loyal to Tesla
According to Ives, Musk’s new pay rate would reassure shareholders that he wants to remain at the helm of Tesla for the foreseeable future.
He won’t be persuaded to turn his attention to Twitter, SpaceX, Neuralink, the Boring Company, or any of the other businesses or interests that he owns.
According to Ives, the board must send a message; the street wants to feel certain that Musk is continuing to be locked in as Tesla’s CEO for the majority of the next ten years.
Many have criticized Musk’s compensation schemes.
This article appeared in Conservative Cardinal and has been published here with permission.
