Tesla's Musk earns $770M in stock options, company confirms

Tesla confirmed Thursday that CEO Elon Musk will get first tranche worth nearly $770 million of a stock-based compensation pack triggered by company meeting several financial metrics.

electric car and solar panel maker’s board-certified that Musk earned big payout, according to a filing with U.S. Securities and Exchange Commission. filing says Musk can buy 1.69 million shares of Tesla stock for $350.02 each, but it wasn’t clear wher he had exercised stock options. His payout is based on difference between option price and Thursday’s closing share price of $805.81.

Musk earned options as part of an audacious compensation pack approved by board in 2018. According to filing, board certified that Tesla had reached milestones by hitting $20 billion in total revenue for four previous quarters and a total market value of $100 billion. company also reached $1.5 billion in adjusted pretax earnings, but that must still be certified by board, filing said.

Musk has to hold stock for a minimum of five years, under terms of compensation pack.

Musk can afford to wait before cashing in on his latest windfall, given his wealth is estimated at $39 billion by Forbes magazine.

All told, incentives approved by Tesla’s board in 2018 consist of 20.3 million stock options that will be doled out in 12 different bundles if company is able to reach progressively more difficult financial goals. It’s one of biggest

In order for Musk to receive all 20.3 million stock options, Tesla will have to generate adjusted annual earnings of $14 billion on annual revenue of $175 billion coupled with a market value of $650 billion. In past four quarters, Tesla has reported adjusted earnings totaling $3.6 billion on revenue totaling $26 billion.