Sina Science and Technology News Beijing time on July 14 morning news, according to foreign media reports, withTeslaShares rose unstoppably, and Elon Musk, the company's chief executive, was preparing to receive a second round of compensation worth $2.4 billion. This is the boldest "put all your eggs in one basket" pay package in corporate history.
Unless Tesla, Inc. 's share price suddenly falls, the performance threshold linked to market capitalization will be reached in a few days. Once the performance threshold is met, 1.69 million stock options will be unlocked, and if Mr Musk chooses to exercise and sell the shares immediately, he will receive a 10-figure salary.
Tesla, Inc. 's share price has more than quadrupled this year, and Musk's net worth has soared to $70.5 billion, making him the seventh richest man on the Bloomberg Billionaires Index. The carmaker's current market capitalization exceedsToyota, Volkswagen and Hyundai combined.
The rise in the stock has made it difficult for Wall Street analysts to understand Tesla, Inc. 's valuation, which topped $300 billion on Monday. Some have focused on the company's efforts to improve car batteries, or on the prospect that the company may soon start selling cars in India.
Tesla, Inc. is scheduled to release this year's second-quarter results on July 22nd. If a profit is announced, it will be the company's fourth consecutive quarter of profitability-a milestone measure of whether a company can enter the S & P 500.
An ambitious goal
Mr Musk, 49, has never received a salary in the usual sense, and his salary is made up of option awards, which he will receive only after Tesla, Inc. achieves his ambitious goals.
Musk's compensation package, announced in early 2018, is the largest corporate compensation agreement ever reached between the company's board of directors and him. According to Tesla, Inc. 's estimate, the compensation package consists of 20.3 million options divided into 12 periods, and if all performance targets are met, Musk's income could exceed $50 billion.
However, it is far from certain whether Mr Musk will get all these option compensation. Each part is linked to specific income targets, adjusted earnings before interest tax depreciation and amortization, and Tesla, Inc. 's average market capitalization over a 30-day and six-month period. The first threshold is set at $100 billion, while the other threshold is increased by $50 billion.
Tesla, Inc. 's sales and earnings before interest, tax, depreciation and amortisation reached $20 billion and $1.5 billion respectively last year, while its 30-day average market capitalization was well over $150 billion for some time. Once the six-month average market capitalization exceeds that level, Mr Musk will be able to claim 1.69 million options and exercise them at will.
Musk was here last week.TwitterHe may end up cashing out some of his shares to boost the development of his other company, SpaceX--. (woodcutter wind)