Elon Musk To Receive $346M in Stocks If Tesla Passes $100Bn Value Mark
Elon Musk is to receive the first $346 million of stock awards in a massive, performance-based compensation package, Reuters reports.
This is due to Tesla’s stock rallying to new milestones in recent months. The company is about to surpass $100 billion in market value.
As Tesla’s shares continue to climb, CEO Elon Musk is closer to receiving the first part of a gigantic pay package that the electric carmaker’s board approved in early 2018. According to the compensation package, Musk is eligible for a 10-year stock options program that could be worth $56 billion.
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This is on the condition that he meets a set of performance and operational goals. The most challenging of the performance goals is to grow Tesla’s market value to $650 billion by 2028 at a steady annual pace. If Musk is able to grow Tesla’s market capitalization by at least $50 billion every 10 months, he will receive the agreed stock options in 12 trenches.
The company was only worth about $60 billion at the time Tesla’s board signed off the compensation package. The company’s shares were declining at the time due to investors’ bleak outlook on the demand for electric vehicles. In August 2019, its market worth dropped to $40 billion.
$346 million awards will make Elon Musk highest-paid business executive in the U.S. history
However, Tesla’s share price hit a record high of $544 on the morning of 14th January 2020. Increasing Tesla’s value to $95 billion. Its shares only need to climb six percent to cross the $100 billion mark and remain there for six months to trigger the award package.
The first trench of stock options is worth approximately $346 million, based on Tesla’s market value at $100 billion. If the stock options are fully implemented throughout 2028, Elon Musk is going to be the highest-paid business executive in U.S. history.
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