Tesla Executives Stock Gains

Senior Tesla board members have earned more than 3 billion dollars through stock awards. The income came from shares granted as compensation and later traded for profit.

Reuters and Equilar Investigation

The findings come from an investigation by Reuters. The review was conducted with executive compensation analysts from Equilar. The analysis focused on long-term stock-based rewards.

Top Earners Identified

Kimbal Musk, Elon Musk’s brother, earned about 1 billion dollars since 2004. Ira Ehrenpreis earned around 869 million dollars since 2007. Robyn Denholm earned more than 650 million dollars since 2014.

Stock Awards Policy Changes

Tesla stopped granting new stock awards to board members after 2020. The company made the change following concerns about excessive compensation.

Earlier Compensation Figures

Between 2018 and 2020, the executives earned more than 12 million dollars. The amount included salaries and stock-based compensation.

Comparison With Other Tech Companies

These earnings place Tesla among the highest-paying companies for board members. Comparable firms include Meta, Microsoft, Apple, and Alphabet.

Tesla’s Response

A Tesla spokesperson defended the compensation structure. The spokesperson said stock awards reflect workload and responsibility.

The spokesperson added that earnings depend on market performance.

How the Stock System Works

Tesla allows executives to buy shares at a fixed price. They can later sell the shares at the public market price.

This system can produce large gains when share prices rise.

Criticism From Financial Experts

Some financial experts criticize the system. They argue it encourages personal profit over company interests.

They warn that such incentives may weaken corporate governance.