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If Elon Musk can increase Tesla's market value 12-fold in the next 10 years, he may be entitled to a maximum of $56 billion in stock awards (likely lower if more shares are sold to the public). This, along with the ballooning of Musk's existing $12 billion share in his company, and his stake in SpaceX and other companies, could help Musk become a Kardashev I trillionaire alongside Jeff Bezos:
A new payment plan for the CEO was approved by Tesla (TSLA) shareholders Wednesday, a spokesperson confirmed. The incentive-based package essentially states that if Musk hits a series of performance milestones between now and January 2028, and he drives his electric car company's market value 12 times higher — taking it from $54 billion to $650 billion — he'll become astronomically rich.
Now, if Musk does drive a 12-fold increase in Tesla's market value, that doesn't necessarily mean the price of a single share in the company will be 12 times larger. The company can do things like issue new stock that could dilute the value of existing shares. But let's assume Musk's Tesla stock would grow at least 10 times more valuable. That would mean just the shares Musk owns today would be worth $120 billion.
Plus, reaching the agreed upon milestones means Musk would get additional stock awards. According to the new compensation plan, Tesla estimates the value of the stock awards to be $2.6 billion, using accounting methods for estimating the cash value of stock options. But if Tesla's market value balloons just as the payment plan hopes, those stock awards could be worth nearly $56 billion, according to a public filing.
Also at Reuters, Fortune, and CNBC.
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(Score: 3, Informative) by Gaaark on Friday March 23 2018, @12:52AM (1 child)
Get a room, already!
Sheeesh.
--- Please remind me if I haven't been civil to you: I'm channeling MDC. I have always been here. ---Gaaark 2.0 --
(Score: 2) by driverless on Friday March 23 2018, @09:59PM
Huh, that's no big feat. If I manage to increase my company's market value 12,000,000-fold in the next 10 years and get on TV I'll become a Kardashian Level I trillionaire as well.
(Score: 5, Interesting) by bob_super on Friday March 23 2018, @01:11AM (6 children)
Reminder: it requires Tesla to be more valuable than most of the legacy car manufacturers, combined.
The guy has a huge goal to meet, and gets a huge reward if it is met, making all the shareholders very very happy. Isn't that what the Street always says should happen?
Considering the taxes on that money, and the history of the guy in re-investing his cash into new ideas which keep the US ahead, that's not the most shocking outcome for such an insane success.
What's actually novel is that if he screws up, he gets nothing. That would be frowned upon by most.
(Score: 0) by Anonymous Coward on Friday March 23 2018, @01:21AM (2 children)
He'd have to screw up pretty royally to wind up with absolutely nothing. Even if he doesn't hit any of the milestones (each of which will reportedly award him more stock), he already owns ~22% of all the existing shares in the company.
(Score: 5, Insightful) by bob_super on Friday March 23 2018, @01:29AM (1 child)
True.
But tell that to all the executives who already own enough of their company to be at least millionaires if not billionaires, yet get pay packages with 7-figure incomes, guaranteed grants every year, and a golden parachute.
(Score: 0) by Anonymous Coward on Friday March 23 2018, @09:56PM
(Score: 0, Troll) by Anonymous Coward on Friday March 23 2018, @04:01AM
Also keep in mind how little he's contributed to society in order to get that much money.
Most of the businesses aren't profitable, some of them will never be profitable. The only one that's done really well was PayPal and that's more or less a parasite that contributes nothing that can't be had by less evil companies.
(Score: 3, Insightful) by JoeMerchant on Friday March 23 2018, @04:07AM (1 child)
With >$12B in the bank, he can play those games.
And another $56B isn't money at that point, it's power.
🌻🌻🌻🌻 [google.com]
(Score: 2) by HiThere on Friday March 23 2018, @04:42PM
Yes. That's worrying. OTOH, it's less worrying than the folks who have that kind of power right now. At least he's been using it in interesting, and possibly important, ways so far. (I'll admit I'd like to leave out that "possibly", but we need to face the fact that real failure is a possibility.)
Javascript is what you use to allow unknown third parties to run software you have no idea about on your computer.
(Score: 2) by fishybell on Friday March 23 2018, @01:14AM
Lots of assumptions here.
(Score: 2, Insightful) by Anonymous Coward on Friday March 23 2018, @01:24AM (5 children)
Obscene, per Google: offending against moral principles; repugnant (extremely distasteful; unacceptable)
What the fuck is immoral or repugnant about people freely giving him their money?
It's nobodies decision but the shareholders, fuck this obscene headline.
(Score: 0, Troll) by Anonymous Coward on Friday March 23 2018, @03:00AM (4 children)
The Musky One must be discredited to the public. He's not marching lock-step with the war drums the establishment is beating. We need people frightened, frantic, and always fearful.
What I wouldn't give to see the war propaganda in that other timeline where Clinton won. Don't get me wrong, we'd still be heading straight for World War III. I just want to see what the propaganda was like.
I'm frustrated with this propaganda actually. It's so banal. Yet, will it work? Unless
(Score: 4, Informative) by takyon on Friday March 23 2018, @03:17AM (3 children)
https://www.reuters.com/article/us-tesla-ceo/tesla-shareholders-approve-ceo-musks-2-6-billion-compensation-plan-idUSKBN1GX0C0 [reuters.com]
Is it propaganda? Not really. The skepticism in Tesla is well-founded. They are selling expensive electric cars, can't hit production targets, and are going up against much bigger car companies who are starting to seriously produce their own electric cars. The company has probably lost the Chinese market [bloomberg.com].
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0) by Anonymous Coward on Friday March 23 2018, @04:06AM
I think most of the Teslas they're selling are going to Seattle where the last thing we need are more vehicles on the road. But, at least they're electric, so they're super efficient at running over the blind, elderly and homeless.
(Score: 0) by Anonymous Coward on Friday March 23 2018, @02:37PM (1 child)
Then he won't hit the targets and won't get the money. Where's the problem, again?
(Score: 0) by Anonymous Coward on Friday March 23 2018, @10:01PM
Pretty sure that was what was said about his previous pay package . . .
(Score: 4, Insightful) by Justin Case on Friday March 23 2018, @01:28AM (4 children)
Are there allegations he stole this money? Engaged in force or fraud? Bilked the taxpayers? Bribed Congress to choke his competition?
If so, let's hear them.
If not, how is accepting money people give you willingly and freely in exchange for a product they consider valuable "obscene"?
(Score: 5, Funny) by takyon on Friday March 23 2018, @01:32AM (1 child)
Ok, changed it for you and triggered AC above.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0, Flamebait) by cocaine overdose on Friday March 23 2018, @01:52AM
(Score: 0, Troll) by cocaine overdose on Friday March 23 2018, @02:02AM (1 child)
I think if people want to celebrate downies, that's fine. Giving downies billions of dollars is a tad bit extreme and some may even cal it "obscene."
(Score: 0) by Anonymous Coward on Saturday March 24 2018, @02:56AM
Sure seems as if he's building an external sci-fi world to me.
Shame he's only a metaphorical faggot, children will take up too much of his time otherwise. That and who doesn't want a piece of Elong's dong?
(Score: -1, Troll) by cocaine overdose on Friday March 23 2018, @02:18AM (6 children)
I would like to be the first to say: Musk is a homosexual. And if you want to have his small, South African package in your mouth, you can go > V > ^ > > ^ V > > THAT A WAY [ycombinator.com]
(Score: -1, Troll) by Anonymous Coward on Friday March 23 2018, @02:37AM (5 children)
And it's irrelevant in both cases. Well, actually, a comment poster being a moron is somewhat relevant.
Oh well, carry on.
(Score: -1, Troll) by cocaine overdose on Friday March 23 2018, @02:41AM (4 children)
(Score: 0, Informative) by Anonymous Coward on Friday March 23 2018, @02:49AM (3 children)
You seem familiar with "man odor". Hm...
(Score: 0, Troll) by cocaine overdose on Friday March 23 2018, @02:58AM (2 children)
https://soylentnews.org/comments.pl?noupdate=1&sid=24662&page=1&cid=656363#commentwrap
(Score: 0) by Anonymous Coward on Friday March 23 2018, @04:27AM (1 child)
This troll is starting to seem very familiar! Anti-musk? Really bad sex-related posts? Not to bright, and dropped on his head when very small? Checks out, all of it. Set mods to kill.
(Score: 0, Troll) by cocaine overdose on Friday March 23 2018, @08:25AM
Chin up, fellow. ACs are the last bastion of good speech. Cherish your place, before the barbarians come to take your wives and eat your children.
(Score: 3, Interesting) by takyon on Friday March 23 2018, @02:50AM
It has more from the detractors.
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 0) by Anonymous Coward on Friday March 23 2018, @05:14AM (1 child)
It doesn't exist. The whole system is ludicrous. All they have are ass wipers who think the crumbs will make them rich too. But, as long as the illusion works, it's all good... ciao, babe!
(Score: 0) by Anonymous Coward on Friday March 23 2018, @05:48AM
Was this your suicide letter?
(Score: 0, Offtopic) by Anonymous Coward on Friday March 23 2018, @06:32AM (1 child)
I'd rather take a submission from aristarchus/jmorris/khallow over this travesty of a story. Please, drive this site further into the ground, I think we're about 2.5 feet in anyway. 6 ft or bust!
(Score: 1, Flamebait) by takyon on Friday March 23 2018, @06:42AM
Fuck you too pal
[SIG] 10/28/2017: Soylent Upgrade v14 [soylentnews.org]
(Score: 4, Insightful) by Freeman on Friday March 23 2018, @03:22PM
Considering most of his compensation is based on the fact that he doesn't run the company into the ground seems like a really good thing. All I seem to hear about is XYZ CEO getting huge payments while the company goes in the toilet. That may just be the media filter focusing on all the crazy / bad things, though. I really don't care about Tesla, but I do hope Musk is successful. If only to further his plans with SpaceX.
Joshua 1:9 "Be strong and of a good courage; be not afraid, neither be thou dismayed: for the Lord thy God is with thee"
(Score: 0) by Anonymous Coward on Friday March 23 2018, @10:31PM
https://arstechnica.com/information-technology/2018/03/elon-musk-deletes-tesla-spacex-facebook-pages-after-cambridge-analytica-news/ [arstechnica.com]
Good call.