Again this time – when the billionaire Elon Musk is once again closer to a huge salary as part of his unusual and potentially incredibly lucrative compensation plan for his work as CEO of Tesla. If all goes well with Tesla’s quarterly earnings – which will be released tomorrow – Elon could win a $ 750 million bonus.
Musk’s unusual payment structure was put in place two years ago. He receives NO BASIC SALARY for his work as CEO. Instead, Musk’s potential salary comes in the form of 12 stock option grants that occur if various financial performance milestones are reached. If he doesn’t meet any of these milestones, he gets nothing. If the business reaches every stage, Musk could hypothetically end up owning a hair under $ 60 billion the value of Tesla shares.
The very first step is triggered if the company maintains an average market capitalization of at least $ 100 billion over six months. It could happen tomorrow.
Elon Musk Might Qualify For A $750 Million Payday TOMORROW
With Tesla’s recent surge putting the company’s market capitalization at around $ 140 billion, this six-month average arrives much earlier than many analysts had originally expected. As of this writing, the company’s six-month average market value is close to $ 96 billion, and with the company’s quarterly earnings report coming out tomorrow, some expect a further surge to make it exceed the threshold.
If this happens, Musk’s first installment of the 12-installment payment plan would be activated, giving him the option to buy 1.69 million Tesla shares at $ 350.02 a share. With Tesla’s current market price at nearly $ 800 per share, it would be an incredible boon for the CEO, valued at around $ 758 million (and, of course, even more if Tesla’s stock continues to rise) .
Investors will closely monitor Tesla’s quarterly report for signs that the resumption of the coronavirus pandemic may already be taking place in China, where resumption of production at the Tesla plant in Shanghai could boost revenues and indicate the outlook an additional recovery in the future.
Here in the United States, Tesla recently announced that it will put all “non-essential” workers on leave and suspend production in their US factories to slow the spread of the coronavirus, which has also had the side effect of causing demand for new cars to collapse all over the country. If they like what they see and Tesla’s six-month average market value increases by at least an additional $ 4 billion, Musk will finally see its Tesla payment deal begin to pay off.