Elon Musks pay: If he fulfils targets, his compensation will exceed the GDP of these countries
How much money does a man require? Even setting aside this rhetorical question for the time being, one can say that Musk is on his way to become the first trillionaire in history and that his pay package, if realised in full, will sail past the GDP of a few countries. Read on for more surprises.
Kolkata: Elon Musk has become the Usain Bolt or Sergei Bubka of compensation packages. In short, he has been breaking is own records. In a meeting of Tesla shareholders, a salary package has been approved for him which will exceed the GDP of as many as nine countries. Among the countries, whose GDP Musk's pay package can put to shame are developed economies of Switzerland, Belgium and Sweden. However, the pay has been linked to turnover and sales figures of Tesla cars and robots.
In a meeting on November 6, Tesla shareholders approved a compensation package which could be paid to him in 12 tranches and each part will be awarded on the basis of Tesla's achievement of certain pre-agreed parameters. According to the Bloomberg Billionaires Index, in the event Musk achieves all the performance targets, his net worth will reach $2.4 trillion. He will sail past the entire economy of several countries.
Forbes has stated that Elon Musk's net worth is $490 billion currently. Needless to say, he is the world's richest person already. Now, if he gets past the targets set for him, Musk's wealth could reach $2.4 trillion. This would exceed the GDP of nine countries. Reuters has stated that if Tesla meets just the first two targets, Musk will earn $26 billion, which will be higher than the combined figure for Mark Zuckerberg of Metacritic, Tim Cook of Apple, and Jensen Huang of Nvidia.
Nine GDPs that Musk could humble
Bloomberg Billionaires Index has stated that is Musk meets all the targets and earns the entire $1 trillion package, his net worth could touch $2.4 trillion or Rs 200 lakh crore -- or a rise of five times compared to the present figure. The IMF database shows the following countries have a GDP around $1 trillion:
The Netherlands: $1.27 trillion
Poland: $980 billion
Switzerland: $947 billion
Belgium: $685 billion
Sweden: $620 billion
Ireland: $599 billion
Austria: $534 billion
Norway: $504 billion
Denmark: $450 billion
Staggered payment for Musk
Musk's payment will be divided in 12 tranches. The first bonus will be awarded when Tesla's value reaches $2 trillion and the company delivers 2 crore vehicles. The second tranche will be awarded when Tesla's value reaches $3 trillion and the company produces 1 million "Optimus" humanoid robots. In the event Tesla achieves all the targets, the company's total value could reach $8.5 trillion and Musk will come to own about 25% of its shares.