Elon Musk receives performance-based payday worth over $700 million
Tesla CEO Elon Musk earned the first performance-based payment of his compensation plan, a tranche of 1.7 million Tesla shares that would amount to about $775 million based on the company's stock price at market close Thursday, according to an SEC filing reported by CNBC.
The big picture: Musk does not take a salary, but he owns about 18.5% of the company — worth about $24 billion — as of May 1, per CNBC. The options are set to vest over 12 tranches that use different milestone requirements.
- To earn the first payout, Tesla's market capitalization had to stay at $100 billion on a 30-day and six-month trailing average.
- Tesla also had to reach a trailing-four-quarter revenue of $20 billion or EBITDA (minus stock-based compensation) of $1.5 billion for Musk to get the tranche, per CNBC.