2022/07/04
By Peter Eavis
The gap with workers widened even further as public companies granted top executives rich pay packages partly inspired by Tesla. When Tesla awarded Elon Musk a multibillion-dollar pay package in 2018, the landmark deal helped to vastly increase the potential compensation of the chief executives at many of America’s biggest public companies.
The package was composed entirely of an enormous stock grant tied to the company’s performance. As Tesla has sold enough electric vehicles to become the most valuable automaker on the planet, Mr. Musk has so far received shares worth nearly $60 billion now — helping to make him the world’s richest person.
Compensation experts say they see the influence of Mr. Musk’s deal everywhere.
“There’s a lot of companies out there that saw that award and its structure,” said Brian Johnson, executive director with ISS Corporate Solutions, which advises businesses on executive pay and other practices. “They think it’s a good way to incentivize performance.”