Monday, July 6, 2020

Tesla Authorizes Elon Musk To Claim Payroll Of Nearly $ 775 Million

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Elon Musk, the fanciful boss of Tesla, is now free to demand a first immediate pay of nearly 775 million dollars (700 million euros), the fruit of a tailor-made compensation program indexed to the manufacturer's financial performance electric vehicles.

In a document sent Thursday, May 28, to the authority of the American financial markets, the SEC, the Californian group indicates that Mr. Musk, his emblematic boss and co-founder, can now get his hands on the first tranche of a package of stock options as part of a compensation program announced in 2018.

Tesla shareholders at the time granted the manager, over a ten-year period, 20.3 million Tesla shares, equivalent to $ 56 billion. However, it can only receive them in increments of 1%, or 1.69 million shares, each time Tesla crosses a threshold on the stock market and reaches a certain level of turnover and profit.

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Capital gain if he sells his shares

Twelve market capitalization thresholds to be crossed have been determined, the highest of which is $ 650 billion to be reached by 2028 "As of the date of this document, one of the important steps relating to income (annual) $ 20 billion and a market capitalization of $ 100 billion (over a given period) has been reached and authenticated by the board of directors ", wrote Tesla on Thursday.

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Elon Musk can therefore request to benefit from approximately 1.69 million Tesla shares which he will buy at a price of $ 350.02 per unit. If he then sells them, he will pocket a gain of $ 774.84 million at Tesla's closing price on Thursday – $ 805.81 – on Wall Street. The special compensation of Mr. Musk, who transformed Tesla into a world leader in the electric car, is challenged in court by a shareholder accusing the board of directors of having failed in his obligations.

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No salary

Apart from these stock options based on Tesla's financial performance, Mr. Musk does not receive a salary but he already owns 18.5% of Tesla's capital, a stake valued at more than $ 24 billion, according to FactSet.

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He has illustrated himself in recent weeks by a showdown with the California authorities to get a resumption of production at the Tesla factory in Fremont, near San Francisco. The site had been closed, like other auto factories in the country, to limit the spread of Covid-19.

On Wednesday, SpaceX, the space company created by Mr. Musk, had to postpone to Saturday, due to bad weather, its first manned flight in the International Space Station.

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The World with AFP

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