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Tesla Boss Elon Musk's $2.6bn Pay Day

Tesla Boss Elon Musk's $2.6bn Pay Day

If that comes to pass, it would presumably add a nice boost to Musk's fortune, which Forbes estimates at $20.1 billion.

"The grant gives Musk $2.6 billion in stock options in 12 tranches that each vest as the company hits key performance milestones over 10 years", CNBC reported.

The award, which won't vest unless a set of ambitious financial goals are met, had been cheered by some large Tesla investors who said it would help the CEO drive the business forward. A spokesman for Tesla declined to comment.

Despite these concerns, shareholders voted in favor of the package, a Tesla spokesperson confirmed Wednesday.

Elon Musk could make as much as $2.6 billion in a compensation package recently approved by Tesla shareholders.

The vote was contentious, with a proxy advisory firm opposing the package and large institutional investors supporting it.

Tesla would likely regard any result above 70 per cent support for Musk's compensation as a win, reflecting agreement from most investors, said compensation consultant Brent Longnecker. Official vote totals will be announced in a filing with the Securities and Exchange Commission. That's an astronomical sum, compared to what other US executives make. At that point drivers are dependent on Tesla's own voice system, which at the moment is intended strictly for calling and navigation. Does he really need more money? Stock value has moved between $250.44 - 388.19 in last one year.




Each of the 12 tranches vests when Tesla hits a market cap milestone and one of the two kinds of operational milestones.

Moreover, Chanos said, the SolarCity acquisition of which KA was short "was going bankrupt" because "they got the market wrong" and "out of the blue Mush decided Tesla should buy SolarCity for United States dollars 8 billion" although SolarCity "was losing USD 300 million in negative EBIT a year before the debt service and depreciation". Large stock awards can be costly for investors in two ways: They can increase a company's expenses and they dilute the stakes of existing shareholders. If Musk is successful, Tesla's investors might feel the effects of both.

John Trentacoste, a partner at pay consultant Farient Advisors, said the 73 percent support level shows "there is support, but scepticism" among investors for Musk's pay plan. Musk already owned about 22% of Tesla before the stock awards were approved. Tesla had said Musk and his brother, who's a company director, wouldn't vote their shares. Stock value has moved between $56.38 - 82.92 in last one year.

Musk is also CEO of SpaceX, the commercial rocket maker, and has multiple other ventures, including The Boring Co., which exploring whether burrowing under cities can become a high-speed transportation option. The deal also binds him to the company, requiring him to remain either CEO or executive chairman and chief product officer.

If Musk were to leave, it would be a huge blow, the company has repeatedly told investors in regulatory filings.

This quarter alone, Tesla has lost Jon McNeill, president of sales and service; its accounting chief Eric Branderiz; and Susan Repo, corporate treasurer and vice president of finance.


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