Elon Musk is already a very rich man. The bizarre businessman and technology entrepreneur is worth an estimated $36.7 billion and he will be seeing that number rise by more than three-quarters of a billion dollars.
According to a filing to the Tesla board, Musk is eligible to cash in on a payday of $775 million thanks to a performance-based milestone.
The Tesla CEO needed to see the company’s stock market value to an overage of $100 billion over the past six months to unluck the bonus which is part of a $50 billion pay package. Despite some volatility in the market due to the coronavirus pandemic, Musk was able to reach that milestone and will now be able to pocket a hefty sum.
From the New York Post:
Musk now has the option to buy 1.69 million Tesla shares at $350 a pop. At Tesla’s Thursday closing price of $805.81, the billionaire could flip his new shares for a profit of about $775 million. To earn his full, $50 billion award, Musk would have to lead Tesla to a market cap of $650 billion by 2028. Tesla’s board signed off on the compensation package in March 2018, when Tesla’s market cap was $52.46 billion.
There are eleven years remaining for Musk to hit every milestone in the $50 billion reward package.
If he fails to do so, Musk, who does not take a salary from Tesla, will no longer collect money from the company. But when you are already worth $36.7 billion, I think you’re going to be alright.