Tesla shares rise 8%, and Elon Musk deserves 700 million daily wages

Tesla shares rise 8%, and Elon Musk deserves 700 million daily wages

Tesla shares rise 8%, and Elon Musk deserves 700 million daily wages, despite the market value of Tesla Inc., Tesla Inc. is on track to become the highest-paid CEO in Lone Musk's history, which fell by 50 50 billion on Friday due to high stock prices.

The immediate result of this unthinking rant was a 10.3% plunge in Tesla's stock to $701.32 at the close Friday. On the other hand, shares of Tesla had skyrocketed 85% this year as of April 30.

On Monday, however, Tesla's badly hit stock staged a remarkable recovery from Musk's misstatements, closing 8% higher and taking Tesla’s market capitalization to $141.1 billion at the close.

But, for Musk, the significance rests on the reality Tesla’s stock market value did reach a six-month average of $100.2 billion. 

This six-month average of $100 billion automatically triggered the vesting of the first of 12 tranches of options granted Musk as part of a multi-billion dollar pay package awarded him in 2018.

Tesla shares rise 8%, and Elon Musk deserves 700 million daily wages

Musk had already met two other requirements: hitting a growth target and exceeding a one-month average $100 billion market cap.

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Each installment gives Musk the option to buy 1.69 million Tesla shares at 69.50.02. On Monday, Tesla will be able to sell shares at a closing price of $ 76,771.19 at a profit of 69 694 million.

In September 2019, Tesla estimated Musk's 2018 compensation package was worth $2.6 billion when it received stockholder approval in March 2018. 

If Tesla's market value skyrocketed, these stock awards could be worth nearly $56 billion. The stock awards might be worth up to $70 billion if Tesla grew quickly.

The compensation award approved by the Tesla board in a Proxy Statement includes a no salary or cash bonus for Musk. Instead, the package sets rewards based on Tesla’s market value, which might jump as much as $650 billion over the next decade.

Musk’s award will exceed anything previously granted to U.S. CEOs. According to the package, Musk will receive the first portion of his reward if he manages to double Tesla's market cap to $100 billion within 10 years. 

The compensation plan involves stock options that vest in 12 tranches.

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Tesla’s market value must increase to $100 billion for the first tranche to vest, which it already has. It must increase in an additional $50 billion increments for the remainder.

The Proxy Statement filed with the U.S. Securities and Exchange Commission (SEC) said Musk "will receive no guaranteed compensation of any kind -- no salary, no cash bonuses, and no equity that vests by the passage of time. 

Instead, Elon's single compensation at the Risk Performance Awards will be 100 100, ensuring that Tesla and all of our partners are compensated, especially if they perform well. "

( Hamari News )