Tesla CEO Elon Musk is seriously close to a $720M payout
Musk doesn't receive a salary or bonuses, but he will get a massive stock option if Tesla hits just one more goal.
Payday approaches.
On Wednesday, Tesla will report its first quarter earnings and we'll likely learn a lot about how the coronavirus pandemic has affected the carmaker's operations. CEO Elon Musk could also be in for a $720 million payday if Wall Street digs the figures coming from the company.
You may recall we reported back in January that Musk was pretty close to nailing every goal needed to unlock the first tier of a very aggressive pay package. To earn the first tranche, Tesla needs to reach a $100 billion value and then hold that value for a one-month and six-month-long average. The automaker's done the first two, and as of Tuesday, Tesla's just shy of the six-month average figure with a figure of $96 billion, Reuters reports.
We've seen Tesla stock spike big time following positive delivery and financial results, and tomorrow's news could push the carmaker into the area Musk needs to cash in. Tesla previously met other operational targets to unlock the payday, too.
Musk doesn't take a salary or receive bonus pay in his position as Tesla CEO, but the $720 million payout would be in the form of a stock purchase. If Tesla meets the first targets listed, the automaker's boss will be eligible to purchase 1.69 million shares of the company at $350.02.
Today, Tesla stock hovers around $778 per share, and with some simple math, that's a profit of over $720 million. This figure will fluctuate depending on what price Musk sells his shares, but nevertheless, it should be a large sum of money. Musk currently has a net worth of $39 billion, according to Forbes, making him the 31st richest person in the world.
