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Elon Musk receives $ 700 million in Tesla’s first compensation payment

May 29, 2020

It is the first of 12 payments for the CEO.

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Elon Musk receives $ 700 million in Tesla’s first compensation paymentElon Musk receives $ 700 million in Tesla’s first compensation payment

This story originally appeared on Engaget

Tesla awarded its CEO, Elon muskwith the first of 12 performance-related payments and worth more than $ 700 million. After one of TechCrunch Musk, filed with the Securities and Exchange Commission, won 1.7 million Tesla shares, valued at $ 775 million, based on the company’s share price on Thursday, May 28.

Musk receives no salary, but owns 18.5 percent of the company. To receive performance-based payments, you have to reach certain milestones for each of the twelve milestones. You got the first after Tesla’s market cap averaged $ 100 billion for 30 days and six days. The automaker also had four-year quarterly sales of $ 20 billion.

Shareholders approved Tesla’s compensation plan in 2018. In its presentation, the company wrote that the current compensation programs “reflect” [sus] Origins of the Beginning “and he intends to evaluate them as circumstances and needs evolve. Tesla also explained:

“We believe that incentives for executives should promote our company’s success and motivate them to pursue corporate goals. We emphasized the structuring of incentives to reward clear, easy-to-measure performance targets that closely align your impulses with the long-term interests of our shareholders. “

However, at least one shareholder is dissatisfied with the way Tesla rewards its executives. Richard Tornetta He sued the company for its compensation plan and accused the board of failure to perform its trustee duty by approving a package that unfairly enriches the company’s executive director. Last September, a Delaware judge ruled that Tesla’s board of directors had to defend Musk’s multi-million dollar compensation plan.