Tesla Inc. released a new compensation plan for Chief Executive Elon Musk on Tuesday, with payments dependent on massive increases in the electric car maker’s stock market value.
The announcement comes as Tesla prepares to report 2017 financial results that are expected to include massive cash losses. The new pay plan is similar to Musk’s current arrangement, the crux of which is this: The higher Tesla’s stock price goes, the more Tesla stock Musk gets.
The eye-popping part: The new plan envisions the Palo Alto company’s value skyrocketing. It sets market value targets in 12 increments, starting at $100 billion and topping out at $650 billion. (The company’s current market value is about $59 billion.)
If the stock hits none of the milestones, Musk would get nothing. It’s unclear how much the financial rewards will motivate Musk, who already is a billionaire and by all indications isn’t in it simply to get rich. The company sees itself not simply as an electric car manufacturer, but rather, as it said Tuesday, as the “world’s first vertically integrated sustainable energy company.”