Under a 10-year CEO performance plan Tesla announced Tuesday, CEO Elon Musk will be paid only if the company reaches a series of market cap and operational milestones.
Tesla has set a dozen market cap targets under the plan, all the way up to a market value of $650 billion, which is nearly $600 billion more than the company is worth today. In addition, the company has set a dozen revenue and adjusted profit goals.
"For each of the 12 tranches that is achieved, Elon will vest in stock options that correspond to 1 percent of Tesla's current total outstanding shares (1 percent of that amount is approximately 1.69 million shares). If none of the 12 tranches is achieved, Elon will not receive any compensation," said Tesla.
If Mr. Musk increased the value of Tesla to $650 billion, his stock award could be worth up to $55 billion, according to The New York Times.
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