Elon Musk’s pay package, which could total $1 trillion over the next decade, has been approved by Tesla shareholders contingent upon him meeting specific performance targets. Under this agreement, Musk will not receive a salary but is expected to fully engage in his role at the company.
Musk, known for his energetic public appearances, has faced criticism for his political stances and support for controversial figures. Despite this, he garners significant support from shareholders, who believe in his vision for the company. Financial analyst Dan Ives describes Musk as a transformative figure comparable to historical innovators. He argues that if Musk succeeds, the return on investment for shareholders could be substantial.
While some customers have protested Musk’s political involvement, analysts like Matt Britzman assert that the financial impact on Tesla’s earnings remains negligible. A considerable portion of Tesla’s market value is attributed to the “Musk premium,” based on future performance expectations rather than the current car business.
Musk’s ambitious targets include producing 20 million vehicles and 1 million autonomous robots, with Tesla’s market value needing to rise from $1.4 trillion to $8.5 trillion. Law professor Ann Lipton notes that the board retains discretion over performance evaluations, suggesting some targets may not be as stringent as they seem.
There are concerns about Musk’s potential distractions due to his other interests. Industry expert Stephanie Valdez Streaty emphasizes the importance of the board ensuring Musk remains focused on Tesla’s objectives. Overall, whether Musk can manage these expectations while navigating his political and personal interests remains a significant question for the company’s future.
Source: https://www.bbc.com/news/articles/c5yp8w5k5q9o?at_medium=RSS&at_campaign=rss