Elon Musk has set a new bar in the dubious science of benchmarking executive pay. Electric carmaker Tesla has laid out a 10-year deal for its chief executive that could bury him in more than $50bn worth of shares.
The entrepreneur has renounced a salary or bonus for the potential reward of 12 tranches of Tesla stock, tied to galaxy-sized targets based on the group’s value, earnings and revenue. To receive the full amount, Mr Musk would, among other things, have to increase Tesla’s value by about $600bn to $650bn — roughly the market capitalisation of Amazon today.
One question is how the unsalaried Mr Musk will pay for his groceries. The answer: under California state law, he has to receive the minimum wage of $37,000, but for now, according to an interview with the New York Times, he stocks his fridge by borrowing against his shares.