In what world does a minimum-wage worker have a realistic shot of becoming a billionaire within a decade?
In Elon Musk's world. To be precise, that's the Earth-bound one where he's CEO of Tesla Motors.
Musk takes pride in his Tesla Motors' salary of $37,584, minimum wage in California. But stock options incentivize Musk to aim high -- really high.
If Musk turns Tesla Motors into a profitable, high-volume automaker with a market value north of $43.2 billion, that would vest each of his 10-part stock options, and he'd add more than $1 billion to his net worth.
So far, Musk is halfway there. That's according to an analysis of Tesla's April 15 proxy filing that Equilar Inc., a board intelligence data firm, conducted on behalf of Automotive News.
Dan Marcec, Equilar director of content and marketing communications, said that while performance-linked compensation is common, "there are several unusual things at play" in Musk's plan. The amount itself is relatively high, he said. And the term of the plan is longer than the usual three-year length of most incentive plans.
"So even though the grant was large, it was meant to incentivize Musk and the company to perform at a high level over a long time," Marcec said in an email.