Elon Musk's bonus is part of a unique compensation plan Tesla laid out for him two years ago, says NYT report.
Tesla chief executive Elon Musk could unlock hundreds of millions of dollars in bonus as the auto company's share price hit a record high on Wednesday, according to a New York Times report.
At $569.56 per share price at Wednesday' close, the company's market cap was just shy of $103 billion, the report added. If the market cap sustains above $100 billion on average over a six-month period, including at least 30 consecutive days, Musk will have the option to buy about 1.69 million shares at about $350 apiece — a payout worth more than $370 million before taxes at the current stock price, the NYT report said.
Tesla's share price has more than doubled in three months (after it reported an unexpected profit for the third quarter in October) with the company's market value surpassing that of General Motors and Ford Motor combined, the report said. Musk's current net worth is about $32 billion, half of it composed of Tesla shares.
Musk's bonus is part of a unique compensation plan Tesla laid out for him two years ago, as per the NYT. Under the terms, Musk, who does not take a salary, would be allowed to buy just over 20 million shares of Tesla stock at a deep discount as the company meets a mix of revenue, profit and valuation targets, added the report.
"Should Tesla achieve all of the goals laid out in the compensation plan, including reaching a $650 billion market capitalization — or roughly double Walmart’s valuation today — Musk could receive up to $55 billion in compensation, a number that could change if the company issues more stock," the report said.