Name recognition in a company is generally a good thing–and can be very helpful when it comes to recruiting. But that’s not the reason Tesla can get away with lower salaries than those offered by their competitors. (And by competitors, I mean companies who compete for the same talent, not necessarily companies who make the same products.)
The reason is Elon Musk‘s compensation strategy, which may not seem logical at first glance. But there is a method behind it: according to a Business Insider analysis of Tesla data from 2021 (which, granted, is a long time ago in the world of hiring), Tesla pays less in straight salary but offers more in stock.
Why stock vs salary is an important difference
Both stock and salary are about money and paying someone for their work, but there’s an important distinction: employees get their regular pay (whether it be hourly or salaried) as long as they are employed. Whether they do a good job or a mediocre one, their company deposits money into their bank account every two weeks.
To keep reading, click here: Tesla Offers Lower Salaries Than Its Top Competitors. The Reason Why Is a Brilliant Lesson in Great Leadership
