Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk received a compensation of just $69,989 in 2013, the automaker said in a regulatory filing. According to the filing, 42-year-old Musk received $33,280 in base salary, which is the minimum wage requirement under California law. However, Musk takes only $1 and returns the remaining amount to the company. The Tesla CEO received a bonus of $36,709 in stock and options.
Tesla CEO could rake in much more
Elon Musk earned $78.2 million in 2012. A big chunk of that was a performance-based option that would vest over a decade. The Tesla Motors Inc (NASDAQ:TSLA) CEO’s compensation compares with that of Ford Motor Company (NYSE:F)’s Alan Mulally, who received a $23.2 million compensation package in 2013. Mulally will reportedly be replaced by chief operating officer Mark Fields in the next few months.
In 2012, Elon Musk was allowed to purchase about 5.3 million shares of Tesla Motors Inc (NASDAQ:TSLA) at $31.17 apiece. Based on Thursday’s closing price of $207.86, those shares are now worth more than $1 billion. The package was aimed at compensating Elon Musk over a 10-year period. The options are tied to achieving specific goals. Musk can’t exercise all options unless Tesla’s market value reaches $43.2 billion in ten years from $3.9 billion at the end of 2012. To get the full value, Musk will also have to expand Tesla’s lineup with the Model X and a third-generation mass market car.
Tesla is yet to achieve operational milestones
The Palo Alto-based electric vehicle maker said that many of the incremental stock value goals have already been achieved. But Tesla Motors Inc (NASDAQ:TSLA) has a long way to go before achieving the operational milestones. The electric vehicle company’s direct sales model is facing hurdles in many states. So far, the company has been banned in five states, while two other states have imposed some restrictions.
The U.S. Federal Trade Commission offered open support to Tesla Motors Inc (NASDAQ:TSLA) on Thursday. Three top staff members of the FTC said that states opposing Tesla’s direct sales model should prefer consumers’ needs over auto dealers’ interests.
Tesla Motors Inc (NASDAQ:TSLA) shares fell 0.17% to $207.50 in pre-market trading Friday.