Despite being among the richest people in the world and he is also amongst the lowest paid of the global CEOs – and the difference in payments is also very substantial.
Tesla has announced that the salary paid to Musk during 2017 was just $49,920. That is equal to the remuneration one would get from an 80-hour work week based on the minimum wages of $10.50 an hour plus overtime as applicable in California.
And according to the Census Bureau, the average yearly earning of an American household is $57,617 which is more than what Musk was paid last year. In comparison to Musk, the annual pay package for Mary Barra, the CEO of General Motors in 2017 was $22.6 million
However, even that small amount is not taken back home by Musk. according to Tesla none of the salary is accepted by Musk. Therefore, even a raise of $6,000 – the minimum wage in California went up by $11 an hour, means nothing for Musk.
However, one should not be blown away by the very modest pay awarded to Musk because he owns approximately 37.9 million stocks of Tesla which has a total valuation of almost $13 billion.
And he also has controlling shares of the space exploration company SpaceX. Now considering the prospects of that company which appear to be good- Musk surely has multiple options for earnings. SpaceX has very recently launched Falcon heavy – the largest rocket that is in operation currently.
And according to Bloomberg, with a wealth of $21.4 billion, he is the 40th richest person in the world.
In case when top executives possess a large portion of company stocks as Musk does, it has been sometimes seen that they are offered very modest amounts as salary – even as low as $1. For example, only $1 every year has been received as salary by Larry Page and Sergey Brin – co-founders of Google, ever since the company was taken public.
There have also been instances when the pay of CEOs is cut down to $1 as was done in the case of GM when it went into bankruptcy for the pay of its CEO Rick Wagoner.
However, eventually a lot of money would be paid to Musk if and when Tesla manages to achieve its aggressive value targets at the stock market that it has set for itself.
It is estimated the Musk would be the owner of $55.8 billion when Tesla achieves all of its goals set for itself. And even under such a circumstance, Musk will not be awarded salaries that are typically associated with thee top global CEOs.
(Adapted from Money.cnn.com)