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Tesla's performance since Musk's compensation package was first approved in 2018

Published 2024-06-13, 05:57 p/m
© Reuters. FILE PHOTO: Elon Musk, CEO of SpaceX and Tesla and owner of X, formerly known as Twitter, gestures as he attends the Viva Technology conference on innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023. REUTER
TSLA
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By Akash Sriram

(Reuters) - Tesla (NASDAQ:TSLA) shareholders have approved CEO Elon Musk's $56 billion remuneration package for the second time at a crucial annual shareholder meeting after a Delaware court invalidated the pay deal earlier this year.

Analysts and investors believe passing of the pay package will alleviate the risk of Musk leaving the electric-vehicle maker.

Here are a few graphics on CEO compensation and Tesla's performance:

MARKET VALUATION SINCE 2018 VOTE

Tesla's market valuation surged in 2020, helping Musk achieve the $650 billion market capitalization target in less than three years, while he was given a 10-year time frame.

However, since the target was achieved, Tesla's market value has fallen below the target level of $650 billion.

ANNUAL EV DELIVERIES

Tesla's annual deliveries of its electric vehicles have risen seven-fold since the remuneration package was approved by investors in 2018, but some analysts estimate sales to fall for the first time this year as EV demand grows at a slower-than-expected pace.

REVENUE & PROFITABILITY

Tesla's revenue and adjusted core profit were also milestones in Musk's $56 billion stock options package, with the highest revenue target being $175 billion cumulatively in four consecutive fiscal quarters.

The highest milestone for adjusted core profit was set at $14 billion, but the company achieved the goal in 2022 and 2023.

HOW OTHER CEOS ARE COMPENSATED

© Reuters. FILE PHOTO: Elon Musk, CEO of SpaceX and Tesla and owner of X, formerly known as Twitter, gestures as he attends the Viva Technology conference on innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023. REUTERS/Gonzalo Fuentes/File Photo

Alphabet (NASDAQ:GOOGL) CEO Sundar Pichai is among the top paid chief executives in the United States with a compensation of about $226 million in 2022.

Meanwhile, Musk's pay package does not include a salary, cash bonuses and time-based vesting of equity in Tesla.

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