Elon Musk received compensation in 2019 of $ 23,760 (22,000 euros) as CEO of Tesla, according to a communication sent to the United States Securities and Exchange Commission (SEC).
The Californian entrepreneur, also owner of SpaceX, has thus gone on to earn a little more than the average gross salary in Spain (23,600 euros) at the helm of Tesla, compared to the 2,284 million dollars (2,114 million euros) that he pocketed in 2018, more than the world’s 65 highest-paid CEOs put together and most of which was paid through company stock, according to The New York Times.
The amount Musk entered in 2019 corresponded entirely to his base salary, since he did not receive any type of bonus or additional remuneration, and represents, on his own request, the minimum salary that he can receive under California law.
In 2018, Tesla earned a base salary of $ 56,380 (52,220 euros) and stock options valued at $ 2,283 million (2,113 million euros), linked to meeting the company’s stock and operating performance targets in the coming years. years.
Tesla presented in January 2018 the new remuneration framework of its CEO for the next ten years, which contemplates that he will only receive 100% of his emoluments if the firm meets ambitious market capitalization, profit and billing objectives.
The executive linked his remuneration to the company becoming one of the most valuable firms in the automotive sector in the world, so that he does not have an assured salary of any kind, or bonuses or bonuses, if he does not meet his objectives.
In this way, the head of the electric vehicle manufacturer divided his compensation for the next ten years into twelve sections, in which he has to meet different objectives and only its achievement will allow him to collect the entire amount.
The first of the requirements that Musk must meet is capitalization. Tesla has to reach in the first step the 100,000 million dollars (89,285 million euros) of value in the Stock Market, until reaching 650,000 million dollars (542,000 million euros) at the end of the period.
In addition, Musk would collect 100% of the expected compensation if the company’s turnover multiplied by 15 compared to 2017, up to $ 175 billion (146 billion euros), and Ebitda would skyrocket 21 times compared to the data for the year. last, up to 14,000 million dollars (11,700 million euros).
For his part, for each of the twelve tranches in which the objectives are achieved, Musk will receive stock options that correspond to 1% of the company’s total current shares (around 1.69 million shares).