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Cars elon-musk-happy

Published on May 4th, 2014 | by Guest Contributor

10

Elon Musk Returned All But $1 Of His $70,000 Salary Last Year

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May 4th, 2014 by  

Originally published on Gas2.
By Zachary Coffey

elon-musk-happy

SEC filings have revealed that Tesla founder and CEO, Elon Musk, took a pay cut of over $78 million last year, returning all but $1 of his salary.

His base salary of $33,280 comes out to an average of $16 an hour for a 40 hour work week but it’s probably safe to assume he puts in a lot more than that. A $36,709 bonus brings his Tesla-based income to just under $70,000, and while this may be good living for the average citizen, but Mr. Musk decided it was too much and returned all but $1 to Tesla’s bank accounts.

This “generosity“ follows the example laid out by other executives that have agreed to work for a single greenback. Just a few of the big names that have worked for a single buck in the past; Sergey Brin, Larry Page and Eric Schmidt of Google, Apple’s Steve Jobs, Mark Zuckerberg of Facebook fame, Lee Iaccoca when he was the head of Chrysler, and even Arnold Schwarzenegger when he was the Governator. Just because they don’t get a paycheck doesn’t mean they’re strapped for cash, though, and what many of these CEO’s lose out in pay they receive back in costly perks like free air travel and security budgets.

Musk will also receive a prince’s ransom at the completion of his contract terms. The 10-year contract he signed with Tesla in 2013 will make the 42-year old Musk, who is already worth $10 billion, a total of $78.2 million richer, should he complete the outlined goals.

  • Launch of the Tesla Model X
  • A smaller second electric sedan
  • 300,000 Annual Tesla sales
  • Market capitalization of $43.2 Billion

Considering he has brought Tesla’s numbers up $21.9 Billion dollars in a single year ($3.9B in 2012 to $25.8B in 2013), he’s more than halfway there in terms of valuation. Tesla also plans to release both the Model E and Model X in the next two to three years. That leaves the only real hurdle to collecting all those millions, which is hitting the 300,000 annual sales mark.

Source: Bloomberg

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  • Redjester

    Gestures like this must make it ridiculously easy to work your tail off for this guy.

  • Jay Alt

    Better to tie compensation to long-term successes than quarterly statements. Too many of our business ‘leaders’ emphasize the latter.

  • ILikeFish

    You’re missing the enormous number of shares they have promised him as well. If he accomplishes what he sets out to do he will be the richest man in the world within a decade.

    • Bob_Wallace

      Wouldn’t that be a wonderful thing?

      I’m all for a world in which the people who bring us clean energy and electric vehicles become the richest of us.

      • Redjester

        Amen.

  • fluxnews.com

    A ton of CEO’s have a $1 salary. My belief is for tax deductions.

    http://www.fluxnews.com

  • Matt

    At least he didn’t pull a fast one like the CEO where I worked 3 company’s ago. He returned all his salary, to make people feel better about those let go. Then read the fine print in stock holders report. The company forgave his loan ($2 million); shaking head.

  • JamesWimberley

    Musk owns a quarter of Tesla, a stake worth $6.9 billion. To an owner like that, the nominal CEO salary is an insignificant blip. He gets taxed less if he takes his profits as capital gains.

    • Rick Kargaard

      Shares are still risk money. He doesn’t have it until the shares are sold. They could be worth a lot more, or they could be worth nothing, in the future.

  • WilliamPJung

    Musk will also receive a prince’s ransom at the completion of his contract terms. The 10-year contract he signed with Tesla in 2013 will make the 42-year old Musk, who is already worth $10 billion, a total of $78.2 million richer, should he complete the outlined goals. http://qr.net/x1m8

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