rtmark
LearnBonds.com

Telsa’s Elon Musk nets more than $700m in one of the biggest payouts in US corporate history

Tesla (NYSE: TSLA) confirmed that chief executive officer Elon Musk has earned a performance-based payment worth more than $700m, it confirmed Thursday.

The payout was triggered by the company reaching several financial metrics which included hitting $20bn in total revenue for four previous quarters.

Musk, already a billionaire, has foregone a base salary with the company in exchange for a shot at a fortune in deeply discounted Tesla shares.

The payment is one of the biggest corporate pay packages in US history and is just the first of 12 different bundles Musk will receive if Telsa meets different financial goals.

The performance-based payout permits Musk to buy almost a 1.69 million Tesla shares at $350.02 each, but it wasn’t clear whether he had exercised the stock options.  His payout is based on the difference between the option price and Thursday’s closing share price of $805.81.

“As of the date of this proxy statement, one of the 12 tranches under this award has vested and become exercisable, subject to Mr Musk’s payment of the exercise price of $350.02 per share and the minimum five-year holding period generally applicable to any shares he acquires upon exercise,” the company said in filings.

Tesla stockholder Richard Tornetta is challenging the compensation plan in a lawsuit against Musk and members of Tesla’s board. Tornetta alleged in the lawsuit that Tesla’s board breached its fiduciary duty by awarding Musk excessive compensation.

Earlier this month, Musk, who is behind the SpaceX exploration programme, reportedly put two of his luxury homes in California up for sale following the birth of his first child with Canadian singer Grimes.

He tweeted: “Don’t need the cash. Devoting myself to Mars and Earth. Possession just weigh you down.”

 

If you plan to invest in stocks, you can checkout our featured stock brokers here. 

Trusted & Regulated Stock & CFD Brokers

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.