I hope you own some Tesla stock. If so, congratulations. It has been on an absolute tear lately! It’s up around 250% so far this year. Needless to say, that is not the norm for most stocks. Reports that sales are better than expected in China and Elon Musk’s plan to produce a commercial semi have sent Tesla’s stock soaring. In mid-June, shares of Tesla were trading at around $1,000 a share. As of this writing on August 27, 2020, shares are trading at $2,242.89. That has been driving the value of the share packages Tesla’s board members have through the roof. And then there’s Elon Musk – who recently joined the $100 billion net worth club for the first time.
Musk has a number of benchmarks, or tranches, to hit in his compensation plan. Since January 1, Elon Musk’s net worth has grown from $27.5 billion to $79 billion on July 22, to a staggering $101 billion right now. Back in January 2018, the board of Tesla presented a compensation plan for Musk that could be worth $100 billion. Musk will receive up to $100 billion in stock options over a decade if he (and Tesla) meet certain goals called tranches. There are 12-tranches to this plan. He gets the first chunk of options when Tesla hits a market cap of $100 billion, which it did in May 2020. At the time the plan was announced, Tesla had a market cap of about $50 billion. After that, Musk gets another of the tranches every time Tesla’s market cap increases by $50 billion. If Musk can grow Tesla to a $650 billion market cap, he would earn the entire $100 billion. Tesla must maintain the value for six months for Elon to earn the tranches.
There are 10 board members at Tesla. Compensation packages are available for nine of them. Japanese pension fund boss, Hiromichi Mizuno, joined Tesla’s board as the 10th member in April. His compensation plan is not yet available.
Here’s how many Tesla shares the nine board members hold, and the value of those positions as of the August 27, 2020 share price of $2,242.89.
#1. Elon Musk
Number of shares held: 34,098,597
Value (as of 8/27/20): $76,479,402,225.33
#2. Larry Ellison
Number of shares held: 3,001,250
Value (as of 8/27/20): $6,732,124,050.60
#3. Steve Jurvetson
Number of shares held: 156,343
Value (as of 8/27/20): $350,660,151.27
#4. Kimbal Musk
Number of shares held:130,848
Value (as of 8/27/20): $293,477,670.72
#5. Ira Ehrenpreis
Number of shares held: 23,764
Value (as of 8/27/20): $53,300,037.96
#6.James Rupert Murdoch
Number of shares held: 10,485
Value (as of 8/27/20): $23,516,701.65
#7. Robyn Denholm
Number of shares held: 1,000
Value (as of 8/27/20): $22,42,890
#8. Antonio Gracias
Number of shares held: 509
Value (as of 8/27/20): $1,141,631.01
#9. Kathleen Wilson-Thompson
Number of shares held: 360
Value (as of 8/27/20): $807,440.40