It is a positive thing to have a name recognition within a company. This can help with recruiting. It’s not because Tesla is able to offer lower salary than their competitors. By competitors, I refer to companies that compete for the talent of the same companies, and not necessarily those who produce the same products.
This is due to Elon Musk compensation strategy. It may not appear logical on first glance. According to a Analysis of Tesla Data from 2021 by Business Insider, Tesla offers more stock than salary.
Stock vs. salary: What is the difference?
Stock and salary both refer to money and compensating someone for their hard work. But there is a key difference: Employees get paid their regular wages (whether they are hourly or salaried), as long as their employment continues. Every two weeks, the company will deposit money into the employee’s bank account regardless of whether they did a good or mediocre job.
Click here to continue reading: Tesla offers lower salaries than its top competitors. The Why is a brilliant lesson in great leadership
