Tesla Stock is on a Downward Spiral But Elon Musk’s Salary Remain in The Billions — Here’s Why
Tesla founder and CEO Elon Musk is one of the most innovative minds of today. There’s no doubt about that. However, it seems like his fellow businesspeople aren’t so impressed with his decisions regarding the management of the car company.
He’s been in quite a lot of controversies these past few years. While entertaining from a certain point of view, they spell trouble for Tesla as a corporate entity. And now, the revelation of his massive 2018 earnings as CEO is bringing in a new wave of criticism for the 47-year-old engineer turned businessman.
Top Paid CEO
Now, it isn’t really news that CEOs make a ton of money. It’s just that Musk is in a whole other league. In fact, his 2018 compensation, which amounted to a jaw-dropping $2.3 billion, puts him on top of the list of the highest paid business executives. What’s even more shocking is that his total earnings match that of 65 other CEOs’ combined.
Of course, this disparity when it comes to annual salaries didn’t go unnoticed within business circles and publications. It was even highlighted by an infographic made by The New York Times. This is a result of the admittedly ‘uncommon’ compensation package that Musk enjoys thanks to Tesla’s board of directors. Technology columnist Troy Wolverton has also observed that this means that the CEO still has control over a great part of the Tesla stock.
Meanwhile, the car company’s board of directors swiftly clarified the nature of Musk’s 2018 compensation, which they say is ‘misleading’ and ‘incorrect’. According to a spokesperson from Tesla, the CEO actually gets no salary, cash bonuses or equities from the company.
Apparently, all Musk gets at the end of the year is a performance award which rests heavily on his own ability to help the company raise its market capitalization from $40 billion to $100 billion. In reality, Musk’s annual ‘salary’ is tied with the company’s future success instead of a fixed number.
However, Musk’s massive earnings still don’t look good considering the problems that Tesla has been facing as of late. For example, the company’s stock is seeing a continuous decline coming into 2019 dipping below $200 in April.
It also follows a ‘tumultuous’ year for the corporation. According to reports from The New York Times, the electric car manufacturer is currently finding trouble in scaling up their production capabilities to meet the demand for their vehicles.
There’s also the issue of Musk’s infamous tweet which got the company in trouble with the Securities and Exchange Commission (SEC). It can be remembered that the CEO tweeted about possibly taking Tesla private in August of 2018 leading to a sudden SEC investigation and a costly legal battle that isn’t resolved yet.
More in Business
A Rundown of Everything the British Royal Family Spent the Most Money On Last Year
The British royal family and their expenditure are topics often discussed by both the public and the press. People, whether they’re a...July 30, 2019
Lady Gaga Gives Rihanna & Kim K a Run For Their Money as She Launches Her Very Own Beauty Brand
In the past few years, plenty of celebrity-owned makeup brands were launched. Some of the first ones to do so are...July 30, 2019
Is Meghan Markle Finally Crumbling Under the Pressures of Royal Life? Here’s the Real Score On the Matter
Ever since her engagement to Prince Harry, Meghan Markle, now the Duchess of Sussex, has faced criticism after criticism from the...July 29, 2019
Here’s Everything You Need To Know About Serena Williams’ Internet Entrepreneur Husband Alexis Ohanian
Fans of the tennis superstar have surely seen her husband cheering from the sidelines during tennis matches. And sometimes, he would...July 29, 2019
Rihanna Is Now America’s Richest Female Musician–Here’s Why She Has No Plans to Stop Working Despite Having Millions
While Rihanna seems to have taken a break from making music, her last album being released last 2016, the Barbadian born...July 16, 2019
This is How Former Victoria’s Secret Angel Heidi Klum Ended Up With A $2 Million Insurance For Her Legs
It’s no secret that celebrities and models make their money using their good looks. So, it seems only logical that they...July 14, 2019
Here are Some Totally Steal-Worthy Career Tips British Billionaire Richard Branson Has For Elon Musk
Elon Musk is one of the most divisive figures in the world of business and technology. On the one hand, the...July 13, 2019
Fashion Victory? The Real Truth Behind Kim Kardashian’s $2.7 Million Lawsuit Win
The Kardashians’ sphere of influence has always included fashion and style. While not everyone appreciates the reality stars’ particular styles, the...July 13, 2019
This is the Real Reason Why Billionaire Kylie Jenner Started Her Cosmetics Company–and It’s Not Because of Money
This year, 21-year-old Kylie Jenner was hailed by Forbes as youngest self-made billionaire ever. And the ‘Keeping Up With the Kardashians‘...July 13, 2019