Billionaire Tesla founder and chief executive Elon Musk is coming close to earning the first tranche of options in a record-breaking pay package.
With Tesla stock rallying to new milestones in recent months and the company about to surpass $100 billion USD in market value, billionaire founder Elon Musk is coming close to earning the first $346 million of stock awards in a massive, performance-based compensation package, Financial Times reported on Tuesday.
Tesla shares have gained a whopping 109 per cent in the past three months thanks to record quarterly numbers, its new factory in Shanghai, and an increased interest in electric vehicles, as the industry aims to meet emissions targets.
According to the FT, investment bank Jefferies raised its target price on the company by 50 percent to $600 USD, saying Tesla is “the only carmaker engaged in a positive-sum game in EVs amid rising market acceptance.”
This forecast would push Tesla’s valuation to over $100 billion USD, and if it can stay at that level for six months, it would unlock the first of 12 share-based payments to Musk.
In 2018, Musk won approval for a new pay deal that could land him a $50 billion bonus. But only if he builds his business into a $650 billion company within a decade.
The entrepreneur receives no standard salary from Tesla, but has pay linked to the company’s shares, based on 12 targets. For each target hit, Tusk will receive a payout of 1 percent payout of Tesla’s share price.
Musk is currently Tesla’s largest shareholder, owning approximately 19% of the company’s outstanding shares, or about 34 million shares in total.