Tesla CEO Elon Musk makes fun of Lucid’s CEO about wages

Tesla CEO Elon Musk has some thoughts on CEO compensation, and he’s in the crosshairs of Lucid CEO – and former Tesla employee – Peter Rawlison.

Rawlinson tops Automotive News’ list of the highest-paid automaker CEOs for 2022. This isn’t really revealing, as top executive compensation has already been publicly disclosed.

“Beware of any company where leadership compensation is not linked to performance,” Musk tweeted on Monday. Lucid did not respond to a request for comment on Musk’s tweet.

The figure cited in the survey was $379 million for Rawlinson, who was at one point the chief engineer for the Model S sedan, Tesla’s first production car. Lucid’s agent reports total compensation in 2022 to be approximately $600,000 in cash and cash equivalents. “The methodology of this study is achieved by wages, so it includes the value of shares acquired and options exercised during the year rather than the value of shares granted during the year,” the company that prepared the survey said in an e-mail.

However, the difference is probably just timing and methodology. Clear Agent data indicates that Rawlinson earned about $567 million over the past three years, or about $189 million annually on average, mainly due to the 2021 stock-related award of about $566 million. That year, Rawlinson acquired about 14 million restricted stock units maturing over four years. It acquired approximately 16 million additional units based on achieving market value milestones.

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Lucid shares traded for more than $55 a share in 2021.

Four of the five related market cap tranches allocated in 2022, plus time-based awards, have access to about 16 million shares in 2022. That’s about $101 million at Lucid’s share price today of about $6.20 per share. A year ago, the value of these units amounted to about $238 million.

Rawlinson’s base salary is relatively low, at $575,000 annually. Mary Barra, CEO of General Motors (GM), will earn a base salary of $2.1 million in 2022.

However, base salary rarely represents the majority of total compensation over time. Parra has earned total compensation of about $26 million per year on average for the past three years. Ford Motor Comparative Figure

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(F) CEO Jim Farley makes about $19 million annually.

And CEOs seem to be doing better in the electric car space. Rivian Automotive (RIVN) CEO RJ Scaringe has earned a comp total of about $141 million annually on average over the past three years. Almost all of that is tied to a $421 million equity-related prize.

Musk’s total compensation over the past three years is about $734 million, or roughly $245 million annually. This was achieved with the highlight of the 2018 Mega Equity Award. The 2018 award provided Musk with options worth nearly $70 billion.

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Before investors pointed out to Musk that he had made more than Rawlinson over three years and that people who live in a glass house shouldn’t throw stones, Tesla stock had soared more than 1,300% over the past five years, rising to about $250 from Under $18 . Sales in 2018 amounted to about $21 billion in 2018, and sales in 2023 are expected to reach $100 billion.

He also ate his musk glass house controversy recently. The Justice Department is looking into Musk’s glasshouse that may have primarily led to an undisclosed compensation to the CEO.

“I just want to reiterate that no glass house (metaphors don’t count haha) has been built, under construction, or planned!” Musk tweeted on Sept. 1: “I am not building any house of any kind anywhere. a period.”

Lucid stock is down nearly 57% over the past 12 months. the

Standard & Poor’s 500


Nasdaq Composite

by 15% and 22%, respectively. Slowing sales growth affected investor sentiment.

Write to Al Root at allen.root@dowjones.com

(Tags for translation) Automotive

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