Tesla is in a good condition right now. The Tesla Cybertruck made its debut and surprised the public. In the third quarter of 2019, the company achieved an unexpected surplus, and sales in 2019 reached a record high. All of these factors have led to the rise of the electric car maker's share price on Wall Street.
Musk is very close to great rewards.
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And with stock prices hitting record highs, CEO Elon Musk is getting closer to getting stock options,ReutersReported on January 14 U.S. time. Tesla's share price rose 9% on the 13th, and by a further 6%, its market value had reached $ 100 billion. That would clear the conditions for Musk to get his first stock option reward. In this case, Musk will have $ 346 million, based on an ambitious reward structure approved in 2018.
However, if the market capitalization reaches $ 100 billion, it is necessary to maintain this level on a monthly and half-yearly average. Mr. Musk will only be granted $ 346 million worth of Tesla shares, the first of the twelve tier stock options, if he meets this requirement. Reuters reports that the performance targets needed to start the vesting period have already been met.
This long-term stock option plan is surprisingly ambitious. In order for Musk to receive the full stock option award, Tesla's market capitalization must continue to rise at a $ 50 billion annual rate over a 10-year period. If Musk led Tesla to meet further sales and profit targets, and raised the company's market capitalization to $ 650 billion, he would earn even more stock option compensation. It will be.
When Musk's reward structure was approved in 2018, Tesla had a market capitalization of $ 53 billion. But now it is around $ 90 billion. In the near future, when the company announces its fourth quarter earnings, you will be able to better understand how close Musk is.
This article is from overseas CBS InteractivearticleWas edited by Asahi Interactive for Japan.