Instead of drawing a fixed paycheck and yearly performance bonuses for serving as the CEO of Tesla, Musk has the luxury of getting paid in stock options. The allowance for how handsome the stock options are depends on a set of goals the company needs to achieve in terms of profitability and market value. “Elon actually earned $0 in total compensation from Tesla in 2018,” Tesla reps told Insider back in 2019 after reports emerged that Musk got a staggering $2.3 billion in salary the previous year.
The existing remuneration structure between Musk and Tesla is established as a grant of 12 stock option tranches over a period of 10 years, with each tranche activating when Tesla hits a certain growth target. Musk would get stock at each tranche equivalent to 1% of the shares. However, the lawsuit argues that the growth targets laid out by the board were not really challenging. So far, it appears that things are going in favor of Musk. Tesla executives testifying in court have said that Musk had no role in formulating the compensation plans, according to The Wall Street Journal.
Right now, the billionaire is also staring at lawsuits from Twitter employees that were unceremoniously fired as soon as Musk took command as the new CEO. Musk has also sold Tesla stock worth $4 billion since he closed the deal, and told Twitter employees that he did it to keep Twitter afloat, reports CNBC.
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