Tesla has announced a new compensation plan for executive director Elon Musk. According to this plan, he will not get a dollar unless the shareholders in the company earn extraordinarily well.
Unfortunately, about 400,000 people who have made pre-orders for Tesla, Musk’s compensation will not be linked to the company’s ability to produce electric cars.
Since its inception, the company has never fulfilled any of its production goals. An analyst report in December predicts that only 100,000 Tesla S will be produced in 2018. Unlike other automotive companies, however, Tesla’s shares continue to rise from the initial public offering in 2010.
Instead of focusing on car production, both General Motors and Ford, Musk’s new compensation plan “all depends on achieving a market cap and operational goals that would make Tesla one of the most valuable companies in the world” by the company.