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Tesla offers CEO Elon Musk a monumental pay-for-performance deal

Joe Mont | January 23, 2018

Preliminary proxy materials (as filed with the Securities and Exchange Commission on Schedule 14A) may be informative for investors, but they are rarely as jaw-dropping as Tesla’s proposed compensation package for founder and CEO Elon Musk.

The 10-year deal, filed on Jan. 23, is a that ties Musk’s compensation to, “market capitalization and operational milestones that are based on Tesla becoming one of the most valuable companies in the world.”

To fully vest, Tesla's market cap would need to grow to $650 billion (an increase of almost $600 billion). Other revenue and profitability goals would also need to be achieved.

The award, according to the company, is modeled after Musk's 2012 performance award, “which helped bring about a more than 17-fold increase in Tesla's market cap in the five years after it was put in place”...

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