Get All Access for $5/mo

Elon Musk Eclipsed Second-Highest-Paid CEO in 2020 Earnings The sort of pay package tied to high business performance metrics is known as a "moonshot package."

By Entrepreneur Staff Edited by Emily Rella

Maja Hitij | Getty Images

Tesla CEO Elon Musk got nearly $6.7 billion in compensation in 2020 thanks to stock options that helped him purchase Tesla shares at a pre-set price.

That total boosted his earnings to 11 times the amount taken in by the second-highest-paid CEO for the year, Oak Street Health's Mike Pykosz.

The sort of pay package tied to high business performance metrics is known as a "moonshot package."

Related: Elon Musk's Tesla Delays the Long-Awaited Cybertruck Until 2022

Pykosz, according to the Bloomberg Pay Index, got $568 million, primarily through stock and option awards, though his salary, bonuses, and perks figured in slightly.

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

He is still firmly at the top, even as other companies incorporate awards similar to his. In fact, the Pay Index includes a button that gives readers the option to "Scale without Elon Musk" because he's so far ahead of everyone else on the list.

Musk's "moonshot package" worked so well for him because Tesla hit the required business targets based on revenue growth, stock price, and other figures that were defined in 2018, when the award system was implemented.

This is his third straight year atop Bloomberg's list.

Related: 3 Lessons We Should Learn From the Space-Bound Billionaires

Entrepreneur Staff

Entrepreneur Staff

Editor

For more than 30 years, Entrepreneur has set the course for success for millions of entrepreneurs and small business owners. We'll teach you the secrets of the winners and give you exactly what you need to lay the groundwork for success.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Growing a Business

How to Determine The Ideal Length of Your Marketing Emails Your Customers Will Actually Read

Wondering how long your marketing emails should be? Here's what consumers say — so you can send them exactly what they like.

Business News

A Former Corporate Lawyer Now Makes Six Figures on YouTube — Here's How She Does It

Here are the secrets to starting and growing a successful YouTube channel, according to a YouTuber with millions of subscribers.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

New Southwest Airlines Major Investor Wants to Force Out CEO, Slams Company's 'Stubborn Unwillingness to Evolve'

Elliot Investment Management announced a $1.9 billion stake in the Dallas-based Southwest Airlines on Monday and is urging shareholders to vote for new leadership.