By the Associated Press on May 28, 2020.
DETROIT – Tesla confirmed on Thursday that CEO Elon Musk will get the first tranche of nearly $ 770 million from a company-triggered stock-based compensation system that responds to several financial parameters.
The electric car and solar panel manufacturer’s board of directors has certified that Musk won the large sum, according to a file filed with the United States Securities and Exchange Commission. The record indicates that Musk can buy 1.69 million Tesla shares for $ 350.02 each, but it was unclear whether he had exercised the stock options. Its payment is based on the difference between the option price and Thursday’s closing price of $ 805.81.
Musk obtained the options as part of a bold compensation program approved by the board of directors in 2018.
According to the record, the board certified that Tesla had reached milestones by reaching $ 20 billion in total revenue for the previous four quarters and a total market value of $ 100 billion. The company has also reached $ 1.5 billion in adjusted pretax profits, but has yet to be certified by the board, the file said.
Musk must hold the stock for at least five years, subject to the terms of the compensation.
Musk can afford to wait before taking advantage of his last windfall, given that his wealth is estimated at $ 39 billion by Forbes magazine.
All told, the incentives approved by Tesla’s board of directors in 2018 consist of 20.3 million stock options that will be distributed in 12 different lots if the company is able to meet targets increasingly difficult. It is one of the largest corporate compensation systems in the history of the United States.
In order for Musk to receive all of the 20.3 million stock options, Tesla will need to generate an adjusted annual profit of $ 14 billion on annual sales of $ 175 billion associated with value 650 billion dollar market. Tesla, which is based in Palo Alto, California, has reported adjusted earnings of $ 3.6 billion over $ 26 billion in sales over the past four quarters.
Leave a reply
You must be logged in to post a comment.