As Delo reports quoting CNBC, the compensation package includes the company’s plan to transferring Musk from the guaranteed remuneration to a compensation in the form of shares, depending on the growth of its capitalization. Tesla shareholders expect that the capitalization of the car producer will increase from current $53 bln to $650 bln.

According to the terms of transfer from remuneration to shares, within next 10 years, Musk will obtain material remuneration in the form of transfer to ownership of the shares of companies: 12 tranches, amounting to 1% of current Tesla’s shares each year.

Tesla CEO will obtain the first tranche after the company’s capitalization will exceed $100 bln.

During each next year, Musk will obtain 1% of shares after the capitalization will increase by other $50 bln.

The entrepreneur will be able to obtain all 12 tranches in case if the company’s market value exceeds $650 bln.

The edition notes that the approved amount of remuneration is formally equal to $2.6 bln at the present value; however, in case of successful realization of all goals and the growth of general capitalization of Tesla, Musk’s net worth for 10 years can increase by $55.8 bln.

The current net worth of the entrepreneur, according to Forbes estimates, is over $20 bln. It is also noted that Musk will be able to obtain compensation only in case if within next 10 years, he remains Tesla’s CEO.

The current compensation plan is drawn up similar to the agreement dated 2012, according to which Musk had to increase capitalization of the company 17 times within five years, what he successfully did.