Elon Musk, CEO of a company that has never turned an annual profit, has qualified for a $700 million stock based compensation award that we highlighted last week, just days after Musk hacked more than $10 billion off his own stock price by Tweeting that he thought the share price was "too high".
Regardless, Tesla's average trailing market cap has topped $100 billion for the last 6 months on average, making Musk eligible for 1.69 million shares that he can exercise at $350.02 per share. With Tesla stock around $765, this would net Musk somewhere in the realm of $700 million. Musk's pay package is the "largest corporate pay deal ever struck between a CEO and a board of directors," according to Bloomberg.
The massive payday comes despite the litany of operational issues of the months past, including shutting down Fremont for the coronavirus, laying off hundreds of contractors and staff and putting himself on the hook for his own board's D&O insurance.
The milestone is part of a March 2018 compensation package that could pay Musk a total of $56 billion in stock options over the course of 10 years, should he meet certain milestones.