Elon Musk close to earning record-breaking $346 MILLION payday as EV maker’s stock more than doubles

Elon Musk is close to earning record-breaking $346 MILLION payday as the EV maker’s stock more than doubles in three months

  • Tesla CEO Elon Musk is coming close to earning the first $346 million tranche of options in a record-breaking pay package
  • The lucrative trajectory comes after the electric vehicle maker’s stock more than doubled in the last three months 
  • Musk doesn’t earn a salary or cash bonus, only options to vest based on Tesla’s market cap and milestones for growth 
  • Shares of Tesla surged 9 per cent to a record high on Monday. They need to rising another 6 per cent to put Tesla’s stock market value at $100 billion
  • Once there, it needs to stay there for both a one-month and six-month average, in order to trigger the vesting of the first of Musk’s 12 tranches of options 

Tesla’s Elon Musk is close to earning a record-breaking $346 million pay ay.

The electric vehicle maker CEO, who doesn’t earn a salary or cash bonus, instead gets options to vest based on Tesla’s market cap and milestones for growth

And he’s coming close to earning the first $346 million tranche of options in a record-breaking pay package, after the electric vehicle maker’s stock more than doubled in the last three months.

Shares of Tesla surged 9% to a record high on Monday.  

Shares of Tesla surged 9% to a record high on Monday. By the market’s close, the stock was still up almost 2 1/2 per cent

Tesla's Elon Musk dances onstage during a delivery event for Model 3 cars in Shanghai, China, a week ago. The EV maker CEO, who doesn't earn a salary or cash bonus, and instead gets options to vest, is close to having a $346 million pay day

Tesla’s Elon Musk dances onstage during a delivery event for Model 3 cars in Shanghai, China, a week ago. The EV maker CEO, who doesn’t earn a salary or cash bonus, and instead gets options to vest, is close to having a $346 million pay day

They need to rise another 6% to put Tesla’s stock market value at $100 billion and then be sustained at that level for both a one-month and six-month average in order to trigger the vesting of the first of 12 tranches of options granted to Musk to buy Tesla stock. 

Musk has already hit an operational target that is also necessary for the options to vest.

For Musk’s subsequent tranches to vest under the terms of the 2018 package, the company’s market cap would have to continue to sustainably rise by $50 billion increments over the agreement’s 10-year period, with the billionaire earning the full package if Tesla’s market capitalization reaches $650 billion and the electric car maker achieves several revenue and profit targets.

Musk's subsequent tranches vest if the company's market cap rises sustainably by $50 billion increments over a 10-year period

Musk’s subsequent tranches vest if the company’s market cap rises sustainably by $50 billion increments over a 10-year period

Musk attends an opening ceremony for Tesla's China-made Model Y program in Shanghai. The billionaire earns his full options package if Tesla's market capitalization reaches $650 billion and the electric car maker achieves several revenue and profit targets

Musk attends an opening ceremony for Tesla’s China-made Model Y program in Shanghai. The billionaire earns his full options package if Tesla’s market capitalization reaches $650 billion and the electric car maker achieves several revenue and profit targets

Tesla already is the most valuable US car maker of all time, after the company closed just a week ago with a market value of $81.39billion. 

The company surpassed Ford Motor’s peak of $80.81billion that was set in 1999.

But Tesla’s market value still trails Toyota Motor Corp and Volkswagen AG. Toyota Motor Corp is valued at $227.90billion while Volkswagen sat at $98.65billion by Monday’s close.

A full payoff for Musk, would be unprecedented.

Pictured: a Tesla showroom. The company is already the most valuable US car maker of all time, after the company closed just a week ago with a market value of $81.39billion

Pictured: a Tesla showroom. The company is already the most valuable US car maker of all time, after the company closed just a week ago with a market value of $81.39billion

Musk, a Tesla co-founder and majority owner and CEO of rocket-maker SpaceX, would stand to make more than anything previously granted to a US executives, according Institutional Shareholder Services, a proxy advisor that recommended investors reject the pay package deal at the time.

Considering the options package and his recent management of the company, his pay package is ‘is the very definition of pay for performance,’ said Ian Keas, senior director at Longnecker & Associates, an executive compensation consulting firm.

 ‘But is he the only individual that could serve in that seat as CEO and deliver that value to shareholders? That’s the billion dollar question.’

Musk’s potential payout compares to the $638 million received by Snap founder Evan Spiegel in 2017 after the social network company’s initial public offering. 

Walt Disney CEO Robert Iger in 2018 earned stock grants worth as much as $149.6 million, including awards related to Disney’s purchase of film and television assets from Twenty-First Century Fox.

 

 

 

 

 

 

 

 

 

Read more at DailyMail.co.uk