Tesla confirms Elon Musk unlocks first tranche of his compensation plan worth ~$800 million

While Musk doesn’t accept a salary from Tesla, shareholders granted him a very generous and ambitious stock compensation plan in 2018.

Tesla confirms Elon Musk unlocks first tranche of his compensation plan worth ~$800 million

 

 

 

TSLA has confirmed that the primary percentage of Elon Musk’s huge chief operating officer compensation set up has unconditional, and it’s value nearly over $800 million. whereas Elon doesn’t settle for a wage from Tesla, shareholders granted him a awfully generous and bold stock compensation set up in 2018. The set up is connected to a big increase in revenue, adjusted income, and a vast increase in Tesla’s market valuation. when those milestones area unit achieved, every $50 billion increase in Tesla’s capitalisation would lead to Musk receiving one.69 million shares at a collection value — beginning at $350 a share. Here area unit the most details of the compensation plan:

 

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As we have a tendency to reportable earlier this month, it looked like Tesla had achieved all the necessities for the primary percentage to vest. during a document asserting Tesla’s 2020 shareholder’s meeting, the corporate has confirmed that the primary percentage has vested: specifically, the 2018 chief operating officer Performance Award is comprised of twelve equal tranches, every vesting solely upon the accomplishment of a capitalisation milestone matched to 1 of eight revenue-based operational milestones or eight Adjusted EBITDA-based operational milestones, all of that were viewed as crucial hurdles at the time of grant. whereas our stockholders aid from every progressive increase in Tesla’s performance and stock value, positioning their interests with Musk’s incentives, the tranches underneath the 2018 chief operating officer Performance Award vest solely upon the complete accomplishment of specific milestones, creating it even more difficult for Musk to understand price from such will increase. As of the date of this proxy statement, one among the twelve tranches underneath this award has unconditional and become exercisable, subject to Elon’s payment of the exercise value of $350.02 per share and also the minimum five-year holding amount usually applicable to any shares he acquires upon exercise. At today’s closing of $805 per share, the shares area unit value $1.36 billion. when the value of exercise the choices at $350 per share, Musk would see Associate in Nursing financial gain before taxes of $768.5 million. Musk must hold the shares for 5 years when he exercises the choices — at that purpose he will got to pay taxes on the gain. Most workers and executives receiving giant stock choices can sell shares. Musk presently holds over twenty million shares of Tesla so as to hide the tax obligations. within the past, Musk has instead opted to borrow against his shares so as to pay his taxes, however it's ne'er been for Associate in Nursing quantity even about to the taxes he's about to owe once he exercises those shares

 

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