If any other CEO was denied their compensation plan after wildly exceeding expectations and earning no salary for years, it would be hard not to find that unjust
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Tesla CEO Elon Musk is in a fight with the Tesla board over his compensation.
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In 2018, Musk made an all-or-nothing deal with his board. In exchange for achieving 12 gargantuan financial metrics, he would earn the right to buy up to 304 million Tesla shares at the fixed price of $23.34.
The financial metrics were considered by many to be impossible, as Musk would have to boost the Tesla’s then valuation of $50 billion to more than $650 billion. As part of the deal Musk took no salary or cash bonuses.
Over 70% of shareholders approved the deal.
In the years that followed, Musk crushed his metrics. By 2021 Tesla shares were trading at $400, boosting the company’s valuation to over $1 trillion. Based on the 2018 agreement, Musk was entitled to a payout of up to $55.8 billion. The payout, if made, would be the........