Musk will receive the first “salary” from Tesla: a first option award worth nearly $ 770 million.
On May 28th local time, Tesla submitted to the US Securities and Exchange Commission (SEC) that the Tesla CEO Elon Musk has been unlocked The first of the huge compensation plans he signed in 2018 was allowed to purchase 1.69 million shares at Strike Price, which in turn resulted in a profit of approximately $ 770 million.
The document shows that, according to the salary plan previously set, Musk can purchase 1.69 million shares at an exercise price of $ 350.02 per share. Tesla ’s stock price was US $ 805.81 at the close of May 28, and the market price of 1.69 million shares was as high as about US $ 1.36 billion, while Musk only paid US $ 591 million, which means that he can make a net profit of about 770 million. US dollars. This income will also depend on when Musk sells these shares.
In 2018, Tesla developed a compensation plan for Musk, so Musk does not have any salary or bonus, only when Tesla ’s market value reaches certain milestones Get option rewards. The compensation plan includes 12 equal grades, the first level is 100 billion US dollars, after which each level increases by 50 billion US dollars, the highest is the market value of 650 billion US dollars within ten years after the program is released. The requirements for operating performance are divided into two aspects: revenue and profit before tax, interest, depreciation and amortization (EBITDA), each of which has 8 levels, with a minimum revenue of US $ 20 billion and a minimum profit of US $ 1.5 billion.
The option reward Musk received is the first item in the compensation plan. According to this compensation plan, if Tesla ’s stock price continues to rise and the company has achieved For additional revenue targets, Musk may eventually acquire about 20.3 million shares of Tesla stock at an exercise price of $ 350.02.
However, the compensation plan also stipulates that Musk ’s stock rewards for achieving market value goals must be held for 5 years before being sold. During this period, Musk will also pay taxes on this part of the income. In addition, Musk also needs to meet the qualifications in order to obtain this part of stock options. At the expiration of this part of the stock options in 2028, Musk must also serve as Tesla and serve as CEO, or Musk as chairman and chief product officer, the new CEO reports to Musk, otherwise Musk will not be able to obtain stock Options.