Tesla chief Elon Musk's $56 Bn pay: justified or excessive?
Vijay Marolia for The National News:
Tesla chief Elon Musk’s $56bn pay: justified or excessive?
Billionaire businessman’s pay package has come under scrutiny amid dropping EV sales and tanking stock price
Alkesh Sharma
In 2018, when the compensation package was approved, Tesla incurred a loss of $1 billion on revenue of a little more than $21 billion. However, last year, Tesla made a profit of $15 billion on revenue of $96 billion, with $13 billion of that being cash flow, said Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.
“This highlights the significant improvement in Tesla's financial health over the years,” he explained.
“The stock is also up over 1,000 per cent over the last over five years, and even with the recent slowdown in sales, Tesla’s ROE [return on common equity] is still over 24 per cent over the last 12 months; at this rate, the equity doubles in three years.”
#TSLA #Long
