Elon Musk Can Now Cash in On Tesla Stock Options
Tesla CEO Elon Musk has unlocked the first part of his $55 billion compensation package, according to Business Insider.
Musk does not take a salary from the company. He is worth $40 billion but is "cash poor" because most of his wealth is in Tesla stock.
Last Thursday, Tesla's board of directors announced in an updated regulatory filing that the company had met its required $20 billion in revenue and a sustained market cap of $100 billion to unlock the first round of stock options available for Musk. He now has the option to purchase 1,688,670 shares at $350.02. As of June 3, 2020, Tesla's stock is around $885 per share. If Musk exercises these options, he must hold the stock for 5 years.
In 2018, shareholders approved 11 other parts of Musk's compensation package that involve higher revenue, earnings targets, and market capitizations.