The reason a company pays a CEO in stock is to align that person's incentives with those of the shareholders. If the big boss gets all their money in a guaranteed salary, there's no reason for them not to get fat and happy and sit on a yacht.
Tesla's CEO pay deal with Elon Musk used the stock price to encourage hard work. Musk could own up to 28% of the company if Tesla's market capitalization increased, reaching $650 billion.
A shareholder sued over Musk's pay package, which was considered exceptionally large by the Delaware judge. Despite this, shareholders voted to approve the package, showing support for Musk.
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