Chief executives rarely berate their peers for outlandish pay packages — mostly because they throw rocks out of glass houses — but Lucid Motors CEO Peter Rawlinson, who won the top-paid title last week, One drew sharp criticism from his electric car rival, Elon Musk. Paid executives in the automotive industry.
Tesla CEO ‘Beware of any company where leadership pay is not tied to performance’ wrote Respond to a post on X about Rawlinson’s compensation.
According to a report, Rawlinson will be paid $379 million in 2022 for his role at luxury electric car maker Lucid, which includes a $575,000 base salary, $5.5 million in stock options and an incredible $373 million in stock awards. New CEO Salary Survey From Automotive News and Equilar.
Despite Musk’s criticism, Rawlinson was paid a hefty paycheck after hitting Lucid’s market capitalization target early last year. SEC filings exhibit.Clear as 88% One of the 250 largest public companies in the US now uses performance-based pay for at least some of its executive compensation.
“One reason we believe the pay-for-performance model is favored is that shareholders generally view it as a more favorable model because the realization of financial performance is tied to value creation for shareholders,” said Noah Kaplan, the firm’s managing director. )explain.Management consulting firm FW Cook said wealth March trends.
Still, Musk makes sense that Rawlinson’s pay isn’t tied to performance. After all, Lucid’s stock is down more than 82% in 2022, and the company’s total revenue is just $608.2 million. Moreover, Rawlinson’s latest compensation package appears to be outstanding when comparing his compensation to that of his peers in the auto industry. Rawlinson’s total compensation in 2022 is 11 times the $34 million made by the next highest paid auto chief, GM CEO Mary Barra, and more than Ford CEO Jim Farley 21 times the $18.3 million.
The CEOs of other EV startups are also getting far less in total pay than Rawlinson. Rivian Automotive CEO Robert Scaringe has about $1 million in revenue by 2022, though his company is now worth more than $22 billion, more than 50% more than Lucid Motors’ roughly $14 billion.
By contrast, Musk, who became Tesla’s chief executive last year, didn’t make any money directly, but the billionaire has been criticized for his $23 billion in revenue. bonus He received the bonus in 2021 after meeting performance goals for profitability and share price appreciation — a deal that was unprecedented when it was struck in 2018. And, as Tesla’s largest shareholder, Musk continues to profit handsomely from the company’s stock price growth.
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