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 goes incredibly well with the quarterly earnings of Tesla.

Unusual agreement

The basic structure of his salary plan was set up no more than two years ago. The CEO of the world’s best auto-making industry gets no basic salary for all of the 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. However, if the company meets all of its previously set milestones, Musk could windup possessing a hair under $60 billion of Tesla’s assets.

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 half a year. If everything goes well, this might happen soon. 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 stock market value is more than $96 billion, and according to sources, analysts are expecting that the market value might hit the billion mark any time now.

Investors are biting their nails

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

In America, Tesla recently announced 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. The company took these measures in accordance with the guidelines set in order to curb the spread of the virus.

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 Rich & Famous

You must be logged in to post a comment Login