Musk's compensation tops $1 billion
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Coronavirus Coverage
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • Working online to book COVID shots, office manager Billie Jean Pellet “typed so fast smoke came off the keyboard,” said dealer Earl Stewart.
      Dealership team hunts for vaccine
      Hope stalls for rebound in European auto sales
      Dana net income falls 53% in Q4
      Daimler hq Stuttgart web.jpg
      Daimler expects to recover production lost to chip shortage amid bullish outlook for 2021
    • Changan
      Huawei, battered by U.S. sanctions, plans foray into EVs, report says
      VW China
      Top VW China exec said to eye joining Renault as local CEO
      Geely to create separate EV business unit
      Valeo, Faurecia outperform China market in 2020
    • Detroit Aerial Panorama during sunset
      Developing future workers to fuel growth in mobility
      Getting around in Las Vegas often involves long waits for a crowded monorail ride, below, or taking escalators up and down to cross elevated pedestrian walkways along the Strip.
      Las Vegas offers best and worst in transportation challenges
      Where is transportation headed?
      In pandemic environment, RV industry ‘roaring back'
    • Electric vehicle recharger
      Consumers on the fence about EVs, J.D. Power says
      Joby
      Toyota's air taxi partner Joby to go public in $6.6 billion deal; firm hires Ford exec
      The Fisker Ocean electric vehicle on display
      Fisker to form EV partnership with Foxconn
      Motional moment: Driverless testing begins in Las Vegas
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • Dealer lots could stay emptier long term
      Toshihiro Mibe is a veteran powertrain engineer, which has put him in close contact with the challenges Honda is facing.
      A return to tradition in Honda's new CEO
      Va. dealers pivot on emissions rules
      By hook or by crook: Hyundai, Kia system goes down
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Fiat Chrysler
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Maserati
      • Ram
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
      • Holden
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • PSA
      • Citroen
      • Opel
      • Peugeot
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • MITSUBISHI: 2022 Outlander
      • NISSAN: 2022 Pathfinder and 2022 Frontier
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
      • Detroit Auto Show
      • New York Auto Show
      • Los Angeles Auto Show
      • Chicago Auto Show
      • Geneva Auto Show
      • Paris Auto Show
      • Frankfurt Auto Show
      • Toronto Auto Show
      • Tokyo Auto Show
      • Shanghai Auto Show
      • Beijing Auto Show
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Gerry McGovern is right man to steer Jaguar reinvention
      Forget the Ford GT; Moray Callum's biggest hit is the aluminum F-150
      Nikon turns lens on auto factory, build quality
      Bosch_information_domain_computer web.jpg
      Bosch, Continental battle to supply the brain of the connected car
    • view gallery
      1 photos
      Chip Shortage
      Jaguar is about to undergo its fourth reinvention in five decades as owner Tata Group takes a second crack at shaking up a brand whose glorious past has rarely translated into a profitable present or sustainable future.
      view gallery
      9 photos
      Leo Michael Cartoons - Q1 2021
      Dealers hiring from hospitality sector
      view gallery
      1 photos
      Hospitality Hires
      view gallery
      1 photos
      No ICE, Please
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • February 23, 2021 | Reliability continues to soar
      February 16, 2021 | Apple looks to take bite out of automotive
      February 9, 2021 | ‘Super’ opportunity for automakers
      February 2, 2021 | GM is all-in on EVs but will consumers follow?
    • Cam Hitchcock
      Benefits remain clear for on-site used-car auctions
      Dave Versical
      The ad that has dealers fighting mad
      John DeMarco
      How to manage a downturn? Clues are in the data
      Dan Shine
      Optimism for the future despite crisis, change
    • Shanghai hints at how Chinese cities will pursue electrification
      How Tesla, GM transformed EV market in 2020
      Is sales recovery nearing an end?
      Beijing's uphill battle to boost EV sales
    • Taiwan Semicon microchips BB web.jpg
      Chip shortage shows need for new thinking
      Digital demands squeeze smaller auto retailers
      President Joe Biden’s move to electrify all government vehicles could push forward charging infrastructure development.
      Dealers aren't wrong to be wary of EV hype
      Economy needs assistance, but dealers do not
    • Buying EV without dealer is just easier
      Dealers are right to worry about EVs
      Tundra engine may not be up to the job
      Chrysler's legacy should continue
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Most buyers still undecided on EVs, J.D. Power finds
      AutoNews Now: Biden tackles chip shortage with lawmakers, order
      AutoNews Now: Kia aims to disrupt 'staid' minivan segment with Carnival
      AutoNews Now: Cherokee Nation to Jeep: Stop using our name
    • First Shift: Tesla output in Calif. resumes after 2-day shutdown
      First Shift: Ford's Farley: 'We need to bring battery production to the U.S.'
      First Shift: Hyundai to replace EV batteries in $900M recall
      First Shift: Hyundai starts next-gen EV push with Ioniq 5 crossover
    • COVID, chips and checks: Sales headwinds and tailwinds for 2021
      N.J. dealer helps position peers for ‘electric revolution’
      DCH Millburn Audi
      'Finding the diamond in the rough': How 2020's No. 1 dealership retains talent
      Don Johnson Motors
      'Distinctive culture' cuts turnover, carves career paths at Wis. dealership group
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Leading Women Conference
    • Fixed Ops Journal Forum
    • ANE Shift
    • Shift: Mobility at a Crossroads
    • Shift: The Future of Mobility (CES)
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • Gentex
    • Reputation.com
    • Ricardo
    • Ricardo
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
    • IHS Markit: COVID-19: The future mobility delusion
    • Level5: 2020 Automotive E-Commerce Report
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Wells Fargo Auto: Switching gears from LIBOR to SOFR
    • Ally: Do It Right
    • DealerSocket
    • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
    • Facebook: The road to a zero-friction future
    • Guide To Economic Development
    • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
MENU
Breadcrumb
  1. Home
  2. Executives
July 09, 2017 01:00 AM

Elon Musk: The billion-dollar man

Tesla CEO's pay, up 3.6 million percent, soars above auto colleagues'

Jackie Charniga
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Bloomberg
    Musk: Met several of Tesla's goals
    2016 Automotive News Compensation Study
    Did shareholders gain?
    See how stock performance compares with executive compensation. Here are the companies in our study, listed in order of change in CEO compensation in 2016 compared with 2015.
    Tesla-11%
    TE Connectivity9.8%
    Lear8.7%
    Harman International-38.4%
    Johnson Controls35.8%
    Ford Motor-7.9%
    KAR Auction Services18.3%
    Illinois Tool Works34.7%
    Goodyear Tire & Rubber-4.6%
    General Motors6.9%
    Cooper-Standard33.2%
    Tenneco36.1%
    Lithia Motors-8.3%
    American Axle & Manufacturing1.9%
    BorgWarner-7.5%
    Eaton33.3%
    Cummins59.8%
    Penske Automotive25%
    DuPont12.5%
    Group 1 Automotive4.2%
    PPG Industries-2.5%
    Ally Financial2.9%
    Dana39.3%
    Autoliv7.5%
    Asbury Automotive-8.5%
    Visteon8.1%
    Sonic Automotive1.5%
    AutoNation-18.5%
    Cooper Tire & Rubber3.8%
    Jabil11.2%
    Gentex25.2%
    TrueCar31%
    CarMax36.7%
    Modine Manufacturing-18.3%
    Superior Industries46%
    Timken42.5%
    Navistar81.3%
    Stoneridge19.5%
    Shiloh Industries-7.3%
    America's Car-Mart-48.2%
    Source: Equilar Inc.

    Elon Musk towered over the highest paid CEOs at publicly traded U.S. automotive companies last year after exercising stock options that skyrocketed his compensation from five figures to 10.

    The Tesla Inc. CEO, who usually sits at the bottom of the list because of his penchant for requesting — and refusing to take — California's minimum wage, posted the largest total CEO compensation by a margin of more than a $1 billion. Musk exercised $1.34 billion in stock options set to expire in 2016, according to the Automotive News/Equilar CEO Compensation study.

    His pay increased by 3.6 million percent.

    However, Musk's reported total compensation "was not actually received in cash upon these exercises," a Tesla proxy statement said. Musk sold $593 million in stock, which was used "solely in order to pay ... income taxes related to such exercise," according to the proxy.

    Musk's compensation increase stems from him meeting several goals in a long-term incentive plan devised by Tesla's board in 2012, according to Dan Marcec, Equilar director of content and marketing communications.

    Tesla's deal with Musk offers 10 performance-based operational benchmarks and 10 market-capitalization goals rewarded by stock options. For each slice of the stock-option pie, Musk must meet both one operational and one stock-value goal.

    Initial options for Musk in 2012 equaled 5 million shares in the company's stock worth $70 million. Had Musk magically achieved all performance goals in 2012, Marcec said, he would have taken home just $78 million.

    Tesla stock has gone up sharply since then. At the end of 2016, it was going for about $200 a share. On Thursday, July 6, at 3 p.m. it was $309.62​ a share, but had dropped 13.6 percent in three days.

    Musk exercised options on 6.7 million shares in 2016, averaging about $194 per share in gains for $1.34 billion.

    As of April 20, the date of the proxy filing, Musk had reached eight market capitalization milestones and six operational ones.

    The operational milestones achieved were completing the Model X alpha and beta prototypes, putting the Model X into production, completing the Model 3 alpha and beta prototypes and overseeing the cumulative production of 100,000 vehicles.

    "When an executive's options vest — or in Musk's case, when he hits one of his performance goals — that just means that they have the right to purchase shares allowable under the plan," Marcec said. "If they purchase the shares, then the value is the difference from when it was granted and the date of purchase."

    BLOOMBERG

    Ford: $30 million in compensation

    Top gainers

    At left, KAR Auction Services CEO Jim Hallett's pay jumped 659 percent. America's Car-Mart CEO William Henderson, meanwhile, had the biggest decline among CEOs.

    Behind Musk's meteoric pay increase was that of KAR Auction Services CEO Jim Hallett, who had the second-biggest compensation gain with a 659 percent jump over the $1,967,033 he earned in 2015 to $14.9 million. Cooper-Standard CEO Jeffrey Edwards took home a 152 percent increase with $10.9 million total compensation.

    Thomas Lynch of TE Connectivity once again secured second place on the salary summit, miles beneath Musk, pulling in $32.1 million for the year.

    Several Ford executives saw pay hikes in 2016, rebounding strongly from figures the year prior. Former Ford Motor Co. CEO Mark Fields had a 75 percent increase with $16.0 million in earnings last year, but Executive Chairman Bill Ford saw even higher gains, raking in 321 percent more with compensation of $30.1 million. Compensation for Ford CFO Bob Shanks was up 54 percent to nearly $3.8 million, though compensation slid 11 percent for Joe Hinrichs, president of global operations, to $4.1 million.

    Compensation declines

    The biggest decline in compensation hit used-car retailer America's Car-Mart CEO William Henderson. Henderson, the lowest paid CEO on the list, saw his intake plummet 67 percent to $779,291 last year from $2.4 million in 2015. Jabil Inc. CEO Mark Mondello's compensation dropped 46 percent to about $3 million from his 2015 intake of $5.6 million. Supplier Jabil's products include communications, lighting, charging and sensing devices

    Meanwhile, stock option gains pushed Fields ahead of General Motors CEO Mary Barra. Barra's compensation rose 51 percent to $11.9 million from $7.9 million in 2015. Although her $2 million base salary exceeded that of Fields by more than $200,000, and she took in more than $4 million more in bonuses and incentive plan compensation, she took no stock option opportunities for 2016.

    pdf/2016-automotive-news-compensation-study.pdf

    2016 Automotive News Compensation Study

    2016-automotive-news-compensation-study.pdf >
    RECOMMENDED FOR YOU
    Volvo CEO explains reasons Geely merger was canceled
    Related Articles
    How we keep score on executive compensation
    Model 3 production newest challenge for maturing Tesla
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Volvo CEO explains reasons Geely merger was canceled
    Volvo CEO explains reasons Geely merger was canceled
    Granholm confirmed to lead U.S. Energy Department
    Granholm confirmed to lead U.S. Energy Department
    GM taps Kristen Siemen to lead sustainability; Dane Parker to retire
    GM taps Kristen Siemen to lead sustainability; Dane Parker to retire
    Sponsored Content: VIDEO: AAM VP of Product Engineering gives a peek behind the curtain on electrification
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 2-22-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 2-8-21
    Read the issue
    See our archive
    U.S. SALES REPORT: Sign up for our quarterly newsletter and get U.S. sales data and news from the previous month sent to your inbox as soon as it's compiled.
    DAILY DRIVE NEWSLETTER: Sign up for our daily podcast newsletter for a lively and in-depth discussion of the biggest stories, plus interviews with big industry names.
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Fiat Chrysler
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Maserati
          • Ram
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
          • Holden
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • PSA
          • Citroen
          • Opel
          • Peugeot
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • MITSUBISHI: 2022 Outlander
          • NISSAN: 2022 Pathfinder and 2022 Frontier
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
          • Detroit Auto Show
          • New York Auto Show
          • Los Angeles Auto Show
          • Chicago Auto Show
          • Geneva Auto Show
          • Paris Auto Show
          • Frankfurt Auto Show
          • Toronto Auto Show
          • Tokyo Auto Show
          • Shanghai Auto Show
          • Beijing Auto Show
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Coronavirus Coverage
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Leading Women Conference
        • Fixed Ops Journal Forum
        • ANE Shift
        • Shift: Mobility at a Crossroads
        • Shift: The Future of Mobility (CES)
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • Gentex
        • Reputation.com
        • Ricardo
        • Ricardo
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
        • IHS Markit: COVID-19: The future mobility delusion
        • Level5: 2020 Automotive E-Commerce Report
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Wells Fargo Auto: Switching gears from LIBOR to SOFR
        • Ally: Do It Right
        • DealerSocket
        • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
        • Facebook: The road to a zero-friction future
        • Guide To Economic Development
        • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds