As Tesla (TSLA) shares have skyrocketed recently, more than doubling in 3 months, CEO Elon Musk could be in for a big payday soon.
As part of his pay package, Musk could earn $346 million if Tesla’s market capitalization reaches $100 billion. With it currently sitting at around $96 billion, it is only a matter of time until it reaches the required level.
But it mustn’t just hit $100 billion, it must be sustained at the level for both a 1 month and 6 month average in order for the vesting to occur (via Reuters).
Musk has additional terms to his pay package that could see him earn hundreds of million more. If Tesla’s market cap continues to rise to $650 billion over the 10 year agreement, which began in 2018, and if the California automaker reaches several revenue and profit targets, Musk would earn the full pay package.
Musk currently has about 34 million shares in Tesla, making up about 19% of the company. At the current value of ~$540, his current shares are worth around $18 billion. If all his options vest, he will have the opportunity to buy an additional 20.3 million shares, which at current rates is worth over $29 billion.