By the way, musk is expected to receive nearly $1 billion in stock awards

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 By the way, musk is expected to receive nearly $1 billion in stock awards


In 2018, Teslas special shareholders meeting approved a huge compensation plan for musk in the next decade, which is linked to Teslas market value and operating performance. If he can lead Tesla to achieve many expected goals, he can obtain about 20.3 million stock options, accounting for about 12% of Teslas outstanding shares on January 19, 2018, but he can not receive any other cash salary and reward.

According to this compensation plan, Teslas market value must reach US $650 billion within 10 years, but this goal can be divided into 12 phases. The first phase market value goal is to reach US $100 billion, and the subsequent goal is to increase the market value by US $50 billion each time. At the same time, Teslas revenue and profits also need to reach the expected specific goals. Each time the goal is achieved, musk can obtain about 1.69 million shares of return award.

Tesla shares rose another 2.49% to close at $537.92 on Tuesday, local time, with a market value of $96.957 billion. As long as Teslas market value increases by more than $3 billion, it will reach the $100 billion milestone. If the companys market value can be maintained at this level for a period of time, musk can receive the first award. According to the stock price level needed for Teslas market value to reach $100 billion - US $554.82, Musks reward value is nearly US $1 billion (1.69 million shares * US $55482 is about US $938 million).

Institutional shareholder services, a consultancy, said that masks full compensation at Tesla would exceed that previously awarded to any U.S. executive.

Figure 2: masks huge compensation plan (first two periods)

Musk has transformed Tesla from a small car manufacturer with production problems to a global leader in electric vehicles, with factories in the US and China. So far, the company has been ahead of established competitors such as BMW and Volkswagen in the field of electric vehicles.

Last week, Teslas market value reached nearly $89 billion, surpassing GMs and Fords combined market values for the first time, thanks to its unexpected earnings in the third quarter of 2019, rapid progress at its Shanghai plant and better than expected vehicle deliveries in the fourth quarter.

However, many investors remain skeptical that Tesla will continue to generate profits, cash flow and growth. More Wall Street analysts rated Teslas shares as sold rather than bought, and the companys shares have always been one of the most short sellers on Wall Street.

When shareholders approved masks Quasi compensation plan in January 2018, Teslas market value was about $53 billion, and faced challenges such as cash shortage, production delay and strong competition from competitors. The pay package is considered too ambitious because it means Teslas market value needs to grow tenfold in 10 years. In 2019, musk achieved two operational milestones, including revenue of more than $20 billion and adjusted EBITDA of $1.5 billion for four consecutive quarters. Teslas adjusted EBITDA excludes equity based compensation, which reached $617 million in the first nine months of 2019. Musk currently holds about 34 million shares in Tesla, equivalent to 19% of the company. When Tesla first announced its compensation plan in 2018, it said that if it did not issue new shares, in theory, musk would receive up to $55.8 billion in stock awards. (small) source of this article: responsible editor of Netease technology report: Wang Fengzhi, nt2541

When shareholders approved masks Quasi compensation plan in January 2018, Teslas market value was about $53 billion, and faced challenges such as cash shortage, production delay and strong competition from competitors. The pay package is considered too ambitious because it means Teslas market value needs to grow tenfold in 10 years.

In 2019, musk achieved two operational milestones, including revenue of more than $20 billion and adjusted EBITDA of $1.5 billion for four consecutive quarters. Teslas adjusted EBITDA excludes equity based compensation, which reached $617 million in the first nine months of 2019.