Musk’s Tesla package pays him billions even if he misses ‘Mars’ goals

WHEN TESLA DIRECTORS offered Elon Musk the biggest executive pay package in corporate history in September, it reassured investors that he would have to achieve the equivalent of“Mars-shot milestones” to earn $878 billion in Tesla stock over 10 years.

- CHRIS KIRKHAM, RACHAEL LEVY AND ABHIRUP ROY

The board’s proposal said Musk would have to “completely transform Tesla and society as we knowit” in robotics and autonomous driving as well as stock value and profits. Conversely, Musk would get “zero” unless he meets those “incredibly ambitious” goals.

Yet Musk could reap tens of billions of dollars without meeting most of those targets, according to a Reuters analysis of his performance goals and more than a dozen experts in executive pay, company valuations, robotics and automotive trends including autonomous driving. He could collect more than $50 billion by hitting a handful of the board’s easier goals that won’t revolutionise Tesla’s products or business, the Reuters review found.