E.lon Musk can look forward to another billion-dollar payday: According to a message from the electric car manufacturer Tesla, which he manages, the conditions are met to grant him the fourth of a total of twelve possible tranches from a salary package decided in 2018.
That said, Musk gets another package of 8.4 million stock options that he can redeem at a price of $ 70 each. At the current share price of $ 420, the four tranches are valued at around $ 11.8 billion.
The salary plan for Musk is unusual. The Tesla boss therefore receives no base salary and no guaranteed bonus payments. Instead, payment is tied to the company’s market capitalization and targets for sales and profits.
Fourth richest person in the world
These milestones sounded very ambitious when the salary plan was agreed. Tesla’s market value at the time was $ 60 billion, and the first tranche alone was estimated to be $ 100 billion.
Thanks to a rapid rise in the share price this year, Tesla is of course well above this mark today. The market value is currently just under $ 400 billion.
In order for a tranche to be granted, a target value for the market capitalization must be maintained for a certain period on average. In addition, a milestone must be reached for sales or adjusted earnings before interest, taxes, depreciation and amortization.
The first tranche fell due in May of this year, with further tranches following in July and September. According to the Bloomberg Billionaires Index, Musk is now the fourth richest person in the world with a fortune of 102 billion dollars – behind Jeff Bezos, CEO of online retailer Amazon.com, Bill Gates, co-founder of software company Microsoft, and Mark Zuckerberg who runs the social network Facebook.
A few days ago, Tesla presented better business figures than expected. And reported a quarterly net profit for the fifth consecutive year.