Elon Musk Gets a Raise, (Makes Minimum Wage)

APR 30 2015 BY TDILLARD 10

In a story on AutoGuide, we learned that Musk got a fairly decent raise.  …by minimum wage standards – $2,080.00, or almost 6%.  Not too shabby.  He now meets California’s minimum wage standards, but, well, he doesn’t accept the salary anyway – unlike some of his top help.  The CFO, Deepak Ahuja, has a $338,000 salary (with options) and Greg Reichow, VP Production, got an increase from $225,000 to $275,000.

Still, Autoguide reports, in spite of a few cuts in the last years, Musk is doing all right.  “…in 2012 he received $78.1 million and owns 28.3 million shares of Tesla, which is worth about $6.2 billion.”

It is good to be Musk.

Categories: Tesla

Tags:

Leave a Reply

10 Comments on "Elon Musk Gets a Raise, (Makes Minimum Wage)"

newest oldest most voted
Chris O

The 6 billion dollar man is he? Impressive!

Mister G

Well deserved Elon.

EVer

he honestly deserves every penny

Anon

One of the few billionaires who act with regard to extend humanities continuation on this pale blue dot, and the greater cosmos…

He has already earned a place, favored by history.

Jo Jo

Just Like Lee Iacocca …$1 per Yr.& the Rest In Shares ….Hope Elon Makes Things happen ,,,,,Just Like Lee Did…

Aaron

I got to meet Lee Iacocca and shake his hand, just after he fully rescued Chrysler (the first time) with the K-cars. I hope that I have the opportunity to meet Elon Musk someday and shake his hand too.

wavelet

Steve Jobs also had thesame deal ($1/yr + rest in shares). Presumingly there’s a legal or SEC requirement for a salary to exist.

I always wondered how this was handled in practice — do those CEOs get a $0.12 direct salary deposit every month? The fees on that would be more than the salary 🙂
Or does the CFO give them $1 from the small change drawer ?

ffbj

I think Musk’s theme poem could be “I sing the body electric.” For the theme song I don’t think you could go wrong with
“Electric Avenue.”

Nix
To be clear, the reason why these CEO’s don’t get wages and get shares instead is that they get a huge tax advantage for doing it that way. These tax savings can be extremely substantial. Here is one example how CEO’s manage to get 0% tax rates on some of their compensation: A CEO gets a bank that the company does business with to agree to make that CEO a huge loan using the CEO’s stock options as collateral. (The major banks pretty much all agree to these loans for big companies, because they want to keep the company’s business). Typically these loans are either 0% loans, or are indexed to the Federal Bank Discount Window Primary Credit Rate (currently 0.75%) The CEO doesn’t actually execute his options, so there is no tax liability. The CEO gets full access to use the value of their money tax free. One CEO just up the 101 from Tesla put $10 Billion dollars worth of his company’s stocks as collateral for his personal line of credit last year. That’s 250 million shares of his company’s stock as collateral for his personal line of credit he can now use as spending money. With no… Read more »
Nix

With regards to my prior post, Elon Musk has borrowed $275 Million in personal loans from Goldman Sachs in the past, using his stock options in various companies as collateral.