Transportation • Cars & Automobiles

Elon Musk is paid out $775 million by Tesla part of his performance-based payout plan

Elon Musk is paid out $775 million by Tesla part of his performance-based payout plan
Lineup of Tesla's electric cars exhibited at Tesla Store Washington D.C. Credit: Mario Roberto Durán Ortiz (Creative Commons Attribution ShareAlike 4.0)

Tesla CEO Elon Musk entered an performance-based payout plan back in early 2018. In this payout plan, Tesla shareholders determined 12 market capitalization milestones and revenue milestones for which the CEO will be awarded each trench of his multi-billion dollar package.

By keeping the company market capitalization at $100 billion for roughly around a month and a trailing average of six months, Musk earned his first chunk of stock options, measuring roughly 1.7 million Tesla shares or an estimated $775 million after Thursday's Tesla share value closed at $805.81.

In a lawsuit against Elon Musk and members of the Tesla board, shareholder Richard Tornetta is accusing the board of awarding the CEO excessive compensation trough the payout plan, despite the CEO having given up his salary and only being awarded as part of the performance-based compensation package.

The next market capitalization target is set at $150 billion which together with other revenue based milestones will award the ceo his next tranche of his compensation package.

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Card reviewed by: @ericof