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Elon Musk Pays Himself $700m In One Of US' Biggest Single Payouts

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Elon Musk Pays Himself $700m In One Of US' Biggest Single Payouts

Elon Musk has paid himself one of the biggest performance-based compensations in US history, earning a huge $700 million (£567m), as confirmed by Tesla on Thursday.

The CEO's payout was triggered after the company reached a few of its targets, including hitting $20 billion (£16.2bn) total revenue for its last four quarters.

Musk has chosen not to have a base salary with the company, instead opting for deeply discounted Tesla shares.

And it looks like it's paid off. Going down as one of the biggest payments in the country's history, it's the first of 12 bundles he will receive when his company meets its financial goals.

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Credit: PA
Credit: PA

However, another stockholder in Tesla is challenging his actions, saying that it is an excessive amount and a breach of the moral integrity of board members.

The filing said that Musk is able to purchase 1.69 million shares of Tesla stock, costing $350.02 (£280) each - although it wasn't made clear whether he did or not.

The payout he got is based on the difference between the option price and Thursday's closing share price of $805.81 (£650).

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Having that option was part of a compensation package which was approved by the board back in 2018.

Tesla was also confirmed to have reached the milestones of hitting a total market value of $100bn (£81bn) on a 30-day and six-month average.

It also was confirmed that Tesla reached $1.5bn (£1.2bn) in adjusted pretax earnings, although that one milestone still needs to be certified.

Maybe Musk was trying to console himself with his hefty payout, after his SpaceX launch didn't go quite to plan this week.

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His bid to send two astronauts to the International Space Station didn't quite get off the ground, as bad weather hampered efforts to get the rocket off the ground in a safe manner at Florida's Kennedy Space Center.

The SpaceX launch had to be cancelled. Credit: PA
The SpaceX launch had to be cancelled. Credit: PA

It was scheduled to be the first launch of astronauts into space on US soil since 2011.

Doug Hurley and Bob Behnken - two of NASA's most experienced astronauts - were the two Americans selected for the historic launch.

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The SpaceX and NASA team will have to wait until the International Space Station is back in the right orbital position to launch the rocket. They will try again on Saturday and if that is aborted then they will try a third time on Sunday.

In addition to the astronauts, the rocket, which has been dubbed the Dragon, will be carrying two items.

One is a series of indestructible custom art pieces by a Los Angeles artist that celebrate humanity. They're made from gold, brass and aluminium.

The second is a mosaic image of Earth, made from more than 100,000 photos of 2020 graduates from around the world.

Featured Image Credit: PA

Topics: tesla, elon musk

Amelia Ward
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