Tesla Inc (NASDAQ:TSLA) has approved CEO Elon Musk’s pay package, according to sources close to the company.
The electric car maker’s shareholders voted to approve a new compensation plan for CEO Elon Musk valued at around $2.6 billion in stock options. The 10-year plan won’t give the sum to the company’s boss in one lump sum and he may not even get all of it as pieces of the plan are incentive-based.
This means that the Tesla CEO needs to hit certain milestones during the coming years and it includes whether or not Musk can help Tesla reach a whopping market valuation of $650 billion in the next 10 years, marking more than a 1000% increase over the company’s current value of around $59 billion.
Once the company reaches a market valuation of $100 billion, Musk will be granted one-twelfth of the total stock options package, or more than $215 million. Every time Tesla’s market valuation goes up by $50 billion beyond that, the boss will be awarded another slice of the same size of the stock options.
The company is offering 16 other operational milestones that have to do with revenue and profitability targets, although each of these is linked to the company’s market cap goals in one way or another.
TSLA stock gained nearly 2% during regular trading hours and edged up an additional fraction of a percentage after the bell.
