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Elon Musk is the second highest paid CEO in 2020

The type of salary package that is tied to high business performance metrics is known as the "Moonshot Package".

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11, 2021

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Elon Musk, Tesla CEO, received nearly $ 6.7 billion in compensation in 2020 thanks to stock options that helped him buy Tesla stock at a set price.

That sum boosted his earnings to 11 times the amount made by the second highest paid CEO of the year, Mike Pykosz of Oak Street Health.

The type of salary package that is tied to high business performance metrics is called a "moonshot package".

Related: Elon Musk's Tesla is delaying the long-awaited cybertruck until 2022

Pykosz made $ 568 million, mostly through stock and option bonuses, according to the Bloomberg Pay Index, though his salary, bonuses and perks brought in slightly.

According to Bloomberg, Musk set a standard three years ago when he started the awards program, and in 2020 at least 15 corporate leaders received similar awards worth $ 100 million or more.

He's still firmly at the top, even though other companies give out similar awards. In fact, the Salary Index has a button that allows readers to "scale without Elon Musk" as it is so far ahead of everyone else on the list.

Musk's "Moonshot Package" worked so well for him because Tesla met required business targets based on sales growth, share price, and other metrics that were set when the award system was launched in 2018.

This is its third year in a row on the Bloomberg list.

Related: 3 Lessons We Should Learn From Space Bound Billionaires

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