When you look at Tesla’s payroll, something striking stands out. This is missing an important name, namely that of the big boss: Elon Musk. The car brand founder waived his salary two years ago and agreed on a lucrative bonus package. The first millions were transferred in early May, but that’s just the tip of the iceberg.
Elon Musk does not work for a salary, but to get an increasing share of the company. In 2018, the CEO spoke to Tesla to exchange his salary for a share remuneration package. The bottom line is that when Elon Musk achieves certain goals he gets the right to buy a certain amount of shares.
Elon Musk raises 775 million
The goals that the Tesla founder must achieve are mainly about operational matters such as achieving a certain turnover and operating results. In addition, there are also expectations at the fair that he has to live up to. A document submitted to the regulator has made it clear that Elon Musk has fulfilled the first conditions. As a result, the first installment of this huge bonus plan was disbursed in early May.
This means that Elon Musk has been given the right to purchase $ 1.69 million worth of Tesla stock at $ 350.02 each. When the stock market closed yesterday, the stock stood at $ 805.81. At this current rate, Elon Musk’s package is worth $ 775 million.
Golden mountains lie ahead
And this is only the beginning. Eleven further tranches have been agreed. If Elon Musk succeeds in achieving all goals, the Tesla CEO will receive $ 2.6 billion in shares. That is not a bad amount if you ask us, but this package is worth much more in practice.
The price of the shares is fixed at the time this bonus was agreed. When Elon Musk unlocks a new tranche, he can buy the shares for a much lower price than they are actually worth. To unlock all tranches, the South African must ensure that the value of the share continues to grow. This is double profit for Musk, because the shares that he can buy for a fixed low price are becoming increasingly valuable.
Mega amount is ready for Elon Musk
If Elon Musk achieves all goals, he will have a share package worth about $ 55 billion at the end of the ride. Bizarre, but it can be even crazier. Take a look at what Amazon CEO Jeff Bezos earns per second.