Tesla CEO Elon Musk earned a huge incentive payout in the first tranche of the automaker's stock — valued at roughly $775 million — according to a document filed with the Securities and Exchange Commission on Thursday.
Tesla CEO Elon Musk rakes in $775 million payout
The tranche consists of roughly 1.7 million shares of Tesla and is estimated at a value of roughly $775 million based on Thursday's closing market value, reports CNBC. Tesla shares closed at $805.81 today, with options at a strike price of $351.01.
In the Thursday filing — which set July 7 as the date for Tesla's annual shareholders' meeting, said:
"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." It's unclear whether Musk has yet used these options.
UPDATE May 28, 6:00 PM EDT: Conditions for Tesla payouts
The billionaire raked in his stock option's first portion for keeping his company's market capitalization at $100 billion through a 30-day and six-month trailing average.
A previous 2018 regulatory filing outlined the conditions for Musk's payout, and said Tesla had to also hit trailing-four-quarter revenue of $20 billion or an EBITDA (without stock-based compensation) of $1.5 billion for Musk to receive the tranche.
The Tesla CEO doesn't take a salary but owns roughly 18.5% of the automaker as of May 1, according to FactSet, reports CNBC. His stake of Tesla is worth roughly $24 billion — with a full award set to vest through 12 tranches with varying milestone requirements upward of $650 billion of market capitalization for Tesla.