If Musk can get all the red, then this reward will become the highest-valued American corporate executive in the history of the United States.
Editor’s note: This article comes from Daily Economic News , edited by Peng Shuiping, reproduced with permission.
Since starting in 2004 as the CEO of Tesla, Musk has refused to receive salary. According to Musk’s salary plan approved by Tesla in 2018 for the next ten years, Musk does not have any salary or cash rewards! However, after Tesla ’s performance and stock price ushered in a “double harvest” in recent years, Musk was finally given a “salary”.
In the early hours of May 29th, Beijing time, Tesla (Tesla) showed in a document submitted to the US Securities and Exchange Commission (SEC) on Thursday that CEO Elon Musk obtained his The first stock option, which includes about 1.7 million shares of Tesla stock, is worth about $ 775 million at Thursday ’s closing price.
“The average market value of 6 months reaches 100 billion US dollars” will cause Musk to be awarded the first of the 12 batches of options, which is part of the salary plan agreed in 2018.
Tesla’s special shareholders meeting approved Musk’s compensation plan for the next ten years on March 21, 2018. According to the plan, Musk does not have any salary or cash incentives, and his income is completely linked to Tesla’s market value and operating performance.
According to the plan, if he can lead Tesla to achieve many goals, then he can get about 20.3 million stock options. Specifically, Tesla has set 12 market value targets, each of which is $ 50 billion more than the previous one, starting at $ 100 billion. If the company’s average market value in six months reaches 100 billion US dollars, then he will receive the first equity award of about 1.7 million shares.
According to the payment terms outlined in the 2018 regulatory documents, Tesla must also reach $ 20 billion in revenue or $ 1.5 billion in EBITDA (less stock compensation) at the end of the fourth quarter before Musk can get the payment.
According to FactSet data, as of May 1, Musk did not receive a salary, but owned about 18.5% of the company ’s shares, worth about $ 24 billion.
Musk is also the majority shareholder and CEO of SpaceX rocket maker SpaceX, but he did not receive any salary or cash rewards. His only reward is based on the continuous growth of Tesla’s market value, revenue, and profits. More options.
Analysts predict that if Musk can get all the red, then this reward will become the highest American corporate executive in the history of receiving option rewards..
Photo source: Photographed by reporter Liu Ling
When Tesla announced Musk ’s plan in 2018, he said that if he did not issue new shares, he could theoretically obtain a return of up to 55.8 billion US dollars. However, since then Tesla has been issuing stocks to compensate employees, and last year Tesla sold $ 2.7 billion in stocks and convertible bonds.
The subsequent option conversion of Musk will be achieved in increments of Tesla ’s market value of US $ 50 billion within 10 years of the agreement. If Tesla’s market value reaches 650 billion U.S. dollars, and the high-tech automaker achieves multiple revenue and profit targets, Musk can obtain a total of more than 50 billion U.S. dollars.