Daily Management Review

Tesla deprives Elon Musk of salary


01/24/2018


Tesla introduced a new compensation system for the founder and general director of the company Elon Musk. The statement stipulates that he will not receive guaranteed payments for his work. He can count on the reward only if the financial performance of the company will match the planned. This is reported in a press release of the company.



OnInnovation via flickr
OnInnovation via flickr
"Elon [Musk] will not receive any guaranteed compensation - neither salary, nor cash bonuses, nor shares that are provided during the work," the report says.

The new system is designed for 10 years. The remuneration is divided into 12 tranches, each of which will consist of an option for 1% of the outstanding shares of Tesla.

 To receive the first tranche, Musk should increase Tesla's capitalization to $ 100 billion (now $ 59 billion). In the future, the businessman will receive the next tranche each time the company's capitalization increases by $ 50 billion. Thus, Mask will be able to receive all 12 tranches only if Tesla's market capitalization reaches $ 650 billion.

In addition to the growth in capitalization, Tesla will have to regularly improve its revenue and EBITDA.

Such a system of remuneration guarantees that Musk will continue to lead the company in the long term, it follows from the report. Tesla does not rule out that in the future the post of CEO may be taken by another person who will report to Musk. Now no other candidates are considered for this position, the company said.

 The new remuneration system will come into full force if shareholders vote for it, the report says. The founder of the company and his brother Kimbal Musk will not participate in the voting.

Musk took 80th place in the Forbes ranking of the richest people in the world. His condition was estimated at $ 13.9 billion.

Despite these ambitious plans, Tesla is still not bringing any profit and will not begin to do it in the near future. In November 2017, the media circled the joke of the famous financial analyst Frank Schwope from the German bank Nord/LB. "You have to ask yourself what will happen before: Elon Musk will fly to Mars with SpaceX, or he will finally manage Tesla profitably." The analyst doubts that the company will implement its plans to sell 500 thousand cars in 2018. Like other experts, Schwope expects Tesla to yield no earlier than 2020.

The colonization of Mars, indeed, can begin earlier. In September, Elon Musk announced that his company SpaceX began focusing efforts on building a large cargo interplanetary ship Interplanetary Transport System (ITS). This is supposed to be subsidized by revenues from the launch of satellites and maintenance of space stations. The ITS must be 100% recyclable. Mask believes that the first ships of this type can sit on Mars as early as 2022.

source: nytimes.com






Science & Technology

Driverless Vehicle For Its Ride-Sharing Service Unveiled By GM’s Cruise

Amazon will allow customers to pay with palms instead of cards

Complete Computer System For Self Driving Cars Launched By Qualcomm

In A Lifetime We Could Accumulate 20Kg Micro-Plastic In Our Body

Creator Of The First 'Gene-Edited' Babies Of The World Gets 3 Year Jail Term In China

China to deploy giant Beidou global navigation system in 2020

VW Zwickau factory is getting ready for electric cars production

Airbus: Passenger hybrid aircraft to take off before 2035

Ocado To Introduce ‘Mini Robotic Warehouse’ With Standard Productivity

AB InBev’s Piled Up Alcohol Is ‘Too Good to Waste’

World Politics

World & Politics

UK adds Greenpeace, PETA to extremist organizations list

Indonesia, UAE sign nearly $23B deal

US to respond to Iran’s attacks on US bases in Iraq

Irish Passport issues hit record in anticipation of Brexit

Reporters Without Borders calls to release Julian Assange

IMF allocates Ecuador $ 500 mln more to support reforms

French pension reform chief to resign

Poland refuses to join EU 2050 climate deal