Elon Musk is an enigma amongst men. Everybody in the world knows his name. From the heights of Kilimanjaro to the vast plains of the Sahara.
He co-founded PayPal. Then Tesla. SpaceX. The whole shaboom.
But what's the latest? Well, it turns out that Musk's salary from Tesla has been reduced to $0 for the year of 2020. Musk's official salary was listed as $23,760 in 2019 and $56,380 in 2018 but in actual fact, Musk has never really accepted his salary anyway.
The company said:
However, he has never accepted his salary. Commencing in May 2019 at Mr. Musk's request, we eliminated altogether the earning and accrual of this base salary.
Under Musk's 2018 compensation agreement, Musk's total compensation package is stock-based. His options vest based on his ability to push the company to hit certain operating metrics.
But what did the agreement entail? Well, the 10-year agreement included 16 operational milestones and if Tesla hits 12 of those milestones, and the company's market cap hit $650 billion, Musk's shares will vest on schedule. That's what the company say anyway.
According to Business Insider, the company hit six of those milestones just yesterda, and the company's market cap soared way past $650 billion last year. On Friday, it was $704.81 billion.
Back in 2019, Musk paid cash for vested options valued at the huge rate of $30.5 million, however he didn't sell any of the shares that he bought in that transaction.
Speaking just a few months back, Musk said:
Only time I sell Tesla stock is when my stock options are expiring & I have no choice.
But what are the stock options all about? Well Musk says they exist to help humanity reach Mars, but he was honest admitting that he 'didn't expect the stock to rise so much so soon'.
Tweeting recently, Musk wrote:
The reason for the stock options is that they're needed to help pay for humanity to get to Mars in 10 to 20 years.
In the words of Viper Higgins, 'Mars. Have you ever been there?' Well, no. But if Tesla keeps rising the way it is right now, we could be there very soon.
So think of that when you're feeling down. One day soon we could sipping ice tea on Mars. And it'll all be thanks to the enigmatic Elon Musk.