With the rise of Tesla’s market value, Elon Musk, its founder and CEO, has won the world’s richest man for many times. However, a document submitted by Tesla to the US Securities Regulatory Commission last week shows that CEO Musk’s annual salary in 2020 is 0.
However, according to Forbes, musk is also the highest paid CEO in the world, with a salary of about $11 billion last year.
This has to say the secret of his salary, because musk really doesn’t get an annual salary.
In 2018, musk signed a ten-year “compensation agreement” with Tesla. According to the agreement, Musk’s compensation is linked to performance. If musk can lead Tesla to achieve its goals, it can obtain 20.3 million stock options. These options are divided into 12 parts, 1.69 million shares in each part, corresponding to the market value growth of US $50 billion.
The exercise price of these stocks is much lower than Tesla’s share price. If they are exercised, Musk’s value will further increase.
The original task was not simple, but what shocked the market was that since last year, Tesla’s share price has soared all the way, and the total market value at the end of the year exceeded $650 billion. Up to now, Tesla’s total market value has reached $710 billion. The original target of 10-year market value reaching $650 billion was completed in less than two years.
Now, with the increase of Tesla’s production and the expansion of the market, it will reach the goal of $800 billion in the next one or two years.
Now, musk already owns 20% of Tesla’s shares. At that time, Musk’s equity will rise to 32%, with a direct wealth of $256 billion.
Therefore, Musk’s hard work now is not to work for the company in vain, but to make Tesla’s shares more valuable, and zero salary also allows musk to pay a lot less tax.
In addition to sitting on Tesla’s rising wealth, musk is also the founder and CEO of three other global leading high-tech enterprises, including the founder of PayPal, the most widely used third-party payment tool in the world, the founder, CEO and CTO of SpaceX, the most famous private space exploration enterprise, and the chairman of the board of directors of Sun City, a clean energy company.
Although musk sold all his real estate and now rents it in a 37 square meter folding house, and although musk is not paid in Tesla, no one can stop musk, who has four of the world’s leading high-tech companies, with a personal wealth of more than $190 billion.
Zero wage musk is always ready to return to the richest man status again.