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Elon Musk, CEO of Tesla Motors Inc. was one of the renowned CEO who are paid with a minimum wage requirement in California. It was reported that the total compensation of Mr. Musk in Tesla amounted $37,584 last year, considering he is among the largest electric car producer’s shareholder. However, he does not accept his uncompensated salary.  

Subsequently, he received stock options worth 5.27 million as his compensations for 10 years in 2012, but Mr. Musk has failed to get a weighty amount of salary for himself, unlike other executives of the company.

JB Straubel, the chief technical officer of Tesla received a salary of $250,560, while Doug Field, the Vice President of Engineering of the company was paid a $306,923 salary, along with a stock award amounting $2,808,785, based on their proxy statement.     

Meanwhile, the company’s newly-hired chief financial officer, Jason Wheeler was compensated by about $20.9 million mostly in stock option grants. Of this weight compensation, around $46,154 was allocated in salary.

According to reports, the proxy filing statement of Tesla suggests to focus on startup origins, and two of their basis in compensating are equity awards and salary. Under its compensation policy, it appears that Tesla Motors has failed to pay its senior executive officers in any form of cash bonus.

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Thus, Mr. Musk is likely one of the visionary Silicon Valley leaders who do not demand for a salary account that overflows. Mark Zuckerberg, CEO of Facebook was only paid a $1 base salary two years ago, while Jack Dorsey, CEO of Twitter received a total compensation worth $68,506  last year, according to reports.   

Conversely, Satya Nadella, CEO of Microsoft, is considered as the top highest paid CEO in the tech industry, comprising of a total compensation amounting to $84.3 million in 2014.

Mr. Musk received almost 37.2 million shares of Tesla as of December last year, suggesting a nearly one-fourth of the total company shares.

Moreover, company shares of Mr. Musk amounted to $9.5 billion, its share price settled at $254.51 on Friday’s close. He also bought SolarCity shares. He aims to increase his company’s ownership to $450 million, thus, the bought SolarCity shares worth $10 million in February. He is also the CEO of SpaceX – a non public rocket and space shuttle company.   

Hence, Mr. Musk is aiming to change the company into a mass market electric car maker. It is likely that his proposals are possible, as around 400,000 Model 3 pre-orders have been attained in just a couple of weeks, after its first launching in March. It appears that these registrations has gained more than $14 billion of potential sales alone for just one of the company’s cars, which is set to run on roads by 2017.

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Expectations on Tesla Shares

Analysts at research firms are expecting the company to post an EPS growth of 154.34% for the next year. Meanwhile, the forecasted change for this year, the company has seen a -193.60%.

Thus, monitoring the EPS of the firm might help the assessment of the stock.

Analysts have given a consensus recommendation of 2.70 on shares. On a scale of 1 to 5, a 5 implies to a recommendation of Strong Sell, while 1 being a recommendation of Strong Buy. Sell-side analysts estimated the stock to settle at $229.53 within the next year.   

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