Tesla shareholders have approved a stock grant for CEO Elon Musk, giving him USD 2.6 billion in stock options, which will come in 12 tranches as the company under his leadership meets key performance objectives over the next 10 years.
In order for Musk to get the first tranche, Tesla has to reach a market cap of USD 100 billion. For each additional instalment, the company’s market cap has to go up by USD 50 billion, therefore by the end of the plan Tesla will have to be worth USD 650 billion.
Tesla shares went up by almost 4 percent after the announcement was made. If all goes to plan, Musk could earn up to USD 55 billion.
Besides increasing the company’s value, the plan also aims to ensure Musk stays at the company, as he had previously hinted that he might reduce his role at Tesla and focus on his many other projects, which involve commercial space or artificial intelligence.