To Top

Elon Musk Gets Closer to a Potentially Lucrative Payday

It is that time of the year again when business tycoon Elon Musk will be paid significantly as a part of his non-ordinary and potentially rewarding salary plan for working as the CEO of Tesla. Musk could get as much as $750 million in the form of a bonus, if everything with quarterly earnings of Tesla goes well.

Unusual agreement

The basic structure of his salary plan was set up no more than two years prior. The CEO of the world’s best auto-making industry gets no basic salary for all of his efforts that he puts into his work. Instead, he generates his income from the 12 stock option grants that only come when the company meets its financial performance milestones.

If the company fails to perform in any of the twelve milestones set, the company isn’t liable to pay him anything. Yet, if the company meets all of its already set milestones, Musk could speculatively windup possessing a hair under $60 billion worth of Tesla stock.

Many miles ahead

The absolute first milestone is met when the company holds on to a market cap average of almost $100 billion for more than a half year. If everything goes well, this might happen tomorrow. Due to the ongoing condition, the organization’s capital is recorded at $140 billion, which means that the six months milestone is coming a lot sooner than numerous analysts initially anticipated.

Right now, the company’s market value of stocks is more than $96 billion, and according to the sources, analysts are expecting that the market value might hit the billion mark.

Investors are biting their nails

Investors are looking forward to getting their hands on Tesla quarterly report to look for the signs that might show whether the Chinese market recovered from the pandemic or not. They are also eager to find out that if Tesla’s revenue is being generated from China, where continued production at its shanghai plant may be a cause of bringing the income back up.

In America, Tesla lately made an announcement that they are placing all of their non-essential workers on leave of absence and are suspending every kind of production activities at their American plants. These measures were taken by the company in accordance to curb the spread of coronavirus. If Tesla sees improvement and its half-year stock market value achieves its target by going up to another $4 billion, Elon Musk will finally get his incredibly lucrative bonus.

More in Lifestyle

You must be logged in to post a comment Login