2021-05-07

Forbes: Musk is the highest paid CEO in 2020

By yqqlm yqqlm

China News Service, May 7th. According to foreign media reports, in the 2020 ranking of the highest paid CEOs, the CEO of Tesla electric vehicle production company (CEO) Elon may not be found. · Musk’s name. However, according to Forbes magazine estimates, he is actually the highest paid CEO in 2020.

Forbes: Musk is the highest paid CEO in 2020

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p > According to the assessment of Forbes magazine, Musk’s salary in 2020 is about 11 billion U.S. dollars, all of which are stock options granted to him by Tesla. This is much higher than Paycom CEO Chad Richison (Chad Richison), who topped the 2020 revenue rankings with a salary of $211 million.

According to reports, Musk was granted stock options as part of the compensation plan he signed with Tesla’s electric car manufacturer in 2018.

In 2018, Musk rejected wages and instead correlated his compensation with Tesla’s main key indicators. Therefore, the CEO of Tesla has no salary for 10 years, but is entitled to stock options equal to 1% of all outstanding securities of the company. The remuneration is divided into 12 levels, and each level can only be unlocked when Tesla reaches a certain financial target.

According to Forbes calculations, in 2020 Musk won an option award worth $13.3 billion. In order to exercise the right, Musk will spend about 2.36 billion US dollars. Forbes said that after deducting these costs, these option rewards will increase Musk’s wealth by $11 billion.

Forbes also said that Musk could not sell these stocks immediately. This may also be one of the reasons why he did not appear on the list of the highest paid CEOs, but experts say that most analysis of executive compensation , All focus on the grant date of the option award, rather than when the option is exercised.

As a developer and producer of electric vehicles and related processes, Tesla Inc. was established in 2003. The company is headquartered in California.