Markets

Galactic payday for Elon Musk

EElon Musk, 48 years old, is actually busy trying to reach for the stars with his space project Space X. But even down on earth, far from the endless expanse of space, there was news about Musk this week. In his function as the founder and head of the California electric car pioneer Tesla, the horror of the German auto industry. Its products do not take off in the direction of space, but roll conventionally on four wheels – at least so far.

But Tesla is giving the technology freak Musk a heavenly shower of money: As part of his long-term compensation plan, he receives the first tranche of a thick package of Tesla stock options. Musk can purchase the paper at a price that is significantly lower than the current stock exchange listing, and thus at a bargain price. In mathematical terms, this gives him a book profit of around $ 775 million – more than Tesla has earned overall in his profit years, not to mention the loss years.

The Tesla boss is entitled to the payday because the company, under his leadership, has achieved predefined growth targets for sales and stock market value. As a reminder, Tesla is currently galactic $ 155 billion on the scales, a valuation that much larger traditional auto companies can only dream of.

The stock options that Musk has now been awarded in a first installment are, if Tesla stays in the fast lane, only a foretaste of much larger sums: If the car maker under Musk’s leadership should also reach further economic milestones, then these wave to to $ 50 billion as a contractually agreed reward.

Visionary and showman

However, this is an amount for which even the super-rich like Musk (estimated net worth: $ 37 billion) really do their best. At Space X, Chief Operating Officer Gwynne Shotwell, 56, has his back on Musk. The manager and engineer is responsible for day-to-day business there and is considered the pillar of the company. While the visionary and showman Musk loves the big performance, Shotwell is the effective doer in the background.

At the time this paper went to press, it was not clear whether the Space X Falcon 9 rocket would really launch on Saturday evening as planned. But something else already: Without Gwynne Shotwell, Musk’s spaceship would never have made it onto the launch pad.

Tags

Related Articles

Back to top button
Close
Close