Musk, Now The World’s Fifth Richest Person, Unlocks Second Part Of $55 Billion Bonus Package
- 22nd July 2020
- Posted by: Hakeem
- Category: Business plans
Tesla CEO Elon Musk unlocked the second tranche of his $55 billion bonus package following the company’s astronomical share price rise, allowing him to gain an extra $2.1 billion through a newly released 1.69 billion stock options, but he must wait five years if he wants to sell them.
Tesla’s trailing market value over six months rose over $150 billion on Tuesday, according to Bloomberg.
The 49-year-old gained access to the first part of his compensation package in May, after the electric carmaker’s six-month and 30-day values averaged at $100 billion.
By Monday, Tesla’s share price had risen 60% since the end of June.
Musk accelerated to the fifth spot on Forbes’ Billionaires List on Monday as his net worth shot to $74 billion.
That came after shares of Tesla, now the world’s most valuable car company, rose nearly 10% on Monday, to $1,643.00, marking a 300% rise this year.
WHAT TO WATCH FOR
To unlock the third trance of his compensation package, Tesla’s six-month average market cap would need to exceed $200 billion and more than $30 billion in revenue.
Musk’s $55 billion compensation package is the largest such performance-related pay deal ever agreed between a CEO and a board. The package includes more than 20 million stock options. While the coronavirus pandemic initially cast doubt over how quickly Musk would hit his targets, the company’s unprecedented share price surge of late suggests it has been anything but hindered. Meanwhile, the company, which is valued higher than Ford, Ferrari, General Motors and BMW combined, is apparently set to produce fully autonomous cars at “basic functionality” by the end of the year, Musk said earlier this month.