Tesla CEO Elon Musk Earns First Tranche of Performance-Based Payout that is Worth More than $700 Million
Posted on 05/29/2020
Electric automaker Tesla Inc. confirmed that its CEO, Elon Musk, earned the first tranche of his lucrative incentive payout, in a document filed with the U.S. Securities and Exchange Commission (SEC). The first tranche was made up of about 1.7 million shares of Tesla, and would be valued at approximately US$ 775 million based on May 28, 2020’s closing market value. Equity shares in Tesla closed at US$ 805.81 on May 28, 2020, and the options have a strike price of US$ 350.02. Musk does not take a regular salary at this point.
According to a 2018 regulatory filing outlining the conditions for the payout, Tesla was required to hit trailing-four-quarter revenue of US$ 20 billion or EBITDA (minus stock-based compensation) of US$ 1.5 billion for Musk to get the first tranche.