Tesla Motors CEO Elon Musk Opted For $1 Pay From Tesla In 2013

APR 28 2014 BY ERIC LOVEDAY 9

Tesla Motors CEO Elon Musk is one of the world’s wealthiest individuals, but that wealth doesn’t come directly from his salary received from Tesla Motors.

As CEO, you’d expect Musk to make a decent salary, but Musk opts not to receive much in the way of actual money from Tesla.

Officially, Elon Musk was paid approximately $70,000 in 2013 in salary and stock options by Tesla Motors in 2013, according to Reuters.

On the cash side, Musk reportedly was offered $33,280 in salary in 2013.  That’s the bare minimum he could be paid by Tesla, according to minimum wage guidelines in California.  But of that $33,280, Musk took only $1 last year.  Presumably the rest sits somewhere in a Tesla Motors account.

Of course, most of Musk’s billions are in Tesla stock.  Additional to that in way of compensation,  in 2012 Musk was “granted the option to buy 5.27 million Tesla shares at $31.17 over a 10-year period if he meets a series of performance goals,” reports Reuters, a figure that if realized today would net the CEO approximately $900,000,000.

Source: Reuters

Categories: Tesla

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9 Comments on "Tesla Motors CEO Elon Musk Opted For $1 Pay From Tesla In 2013"

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He is on the small list of CEOs who take the long term view for their company’s future (not short term with golden parachutes).

That’s a really cool way to do compensation.

You mean rules that force CEO’s to chase (or invent) quarterly profits isn’t good for the company or the economy? CEO’s that are forced to focus on the long term approach would be better for everyone except incompetent CEO’s?

I can hire Elon for my business and give him a raise. 🙂

Elon is the living proof that for doing creative work, we really do not need to offer significant salary for the CEO. We have plenty of good people to the leadership of large company and many of them would offer to work with moderate pay. Sheer prestige of CEO position is often good enough compensation.

E.g. as A Finn, I would gladly have taken the position as a CEO of Nokia back in 2010 with €1 salary. And for sure I would have been better CEO than Stephen Elop, who destroyed the value of company $1.5 billion for every one million dollars what he made as bonuses.

CEO compensations have been grown mostly ridiculous. And It is good that flashy figures such as Elon Musk and Steve Jobs takes clear position, that greed is irrelevant in the management of successful company. But to have vision to look forward!

Even a pet rock would have been better CEO then Trojan Elop.

$1 is just symbolic. They still make millions from options and shares. Most $1 CEOs ( zuckerberg, Cisco’s John Chambers, Elon , google’s brin and page) have billions worth of shares. So, even a small dent (artificial?) in profit can boost the stock value significantly, thus boosting their own net worth.
At the end, these are just symbolic gestures. If we must think good, we should do so of founders who didn’t raise billions from public and gave away their product for free : like wikipedia, like craigslist, etc. Rest are just a greedy pack.

What I like about Elon Musk is he is doing so many new things for space travel. Vs what NASA is doing now by living off of the dream of space travel in the 1960’s. In that NASA talks on and on about the good old days in the 1960’s and 1970’s but Elon Musk is out building new things that no one has seen before.

Ummm… Rockets were invented by Chinese in 1200s, first electric car was in 1830s… Elon is not doing anything new, he is trying to do it better, big difference. Do you think Elon would be building rockets if NASA didn’t inspire the world with space flight?