A recent report from The New York Times indicated that Tesla CEO Elon Musk received stock options worth nearly $2.3 billion in 2018, more than 17 times the reported compensation of the next-highest executive on the list.
But the electric-car maker disputed that claim, saying Musk “actually earned $0 in total compensation from Tesla in 2018.”
The discrepancy comes from the pay being calculated in accordance with Securities and Exchange Commission rules on CEO compensation reporting, as opposed to the actual value realized by executives in any given year.
The structure of Musk’s compensation plan is also a factor, and the Tesla CEO won’t personally realize any value until the company hits some extremely ambitious performance goals.
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How much a corporation’s chief executive makes in a single year seems like a simple question, but specifying what top executives truly make (and when) is a surprisingly difficult task.
A recent report in The New York Times indicated that Elon Musk made $2.3 billion in 2018 as CEO of Tesla, but the situation is more complicated. Unless the electric-car maker achieves some truly stunning goals, Musk may not personally benefit from the massive award.
The key to …read more
Source:: Businessinsider – Strategy