Tesla CEO Elon Musk doesn’t receive a salary from the company. Instead, he only gets paid based on stock options that vest based the automakers market capitalization, and milestones for revenue and growth.
With the surge in Tesla shares (TSLA) yesterday after the Q1 2020 earnings call, Musk is that much closer to earning a massive paycheque.
The current market capitalization for Tesla is over $150 billion. In order for his first tranche of options to vest, the automaker must have a 6 month average of $100 billion. As of this week, the six month average is $96 billion. (via Reuters)
Each of Musk’s 12 tranches give the option to buy 1.69 million TSLA shares at $350.02 each. At the after-hours trading yesterday of $870 per share, Musk could sell those shares for a cool ~$878 million.
If successful in reaching the necessary targets to trigger the options, the payday for Musk would be the biggest ever for any executive or CEO.