Shares in electric car maker Tesla jumped on Monday, with a market capitalisation of nearly $100 billion. And under previous pay incentives, Tesla's market capitalisation of $100bn and its requirements would have earned its CEO Musk a stock award worth nearly $1bn.
According to Musk's compensation package for the next decade, approved by the Tesla special shareholders'meeting on March 21,2018, Musk's compensation will be about 20.3 million stock options linked to Tesla's market value and operating performance, accounting for about 12 percent of outstanding shares on January 19,2018, without any other cash wages and incentives.
Tesla's market-value requirements are divided into 12 levels, with $100 billion in the first tier, followed by a $50 billion increase in each tier, up to $650 billion, while operating results are divided into revenue and profit before interest, tax, depreciation and amortisation, with eight levels in each category, with revenue of $20 billion and profit of $1.5 billion. After reaching each level of market capitalisation, only 16 of the company's operating performance were awarded about 1.69 million shares, but each of the 16 requirements only matched once.
Tesla's revenue hit $21,461 billion last year, surpassing the minimum $20 billion required by the incentives, and this year's more than $20 billion after electric-car production and delivery hit a new high, leaving Musk with a stock award, the only obstacle being Tesla's market capitalisation.
And Tesla's market value has reached $94.603 billion, just $5.397 billion from $100 billion, after Monday's jump of $46.71 and its first share price above $500.
In terms of share prices, Tesla has a market capitalisation of more than $100 billion and will need to exceed $554.82, or a further $27.96 on the basis of Monday's closing price of $524.86.
If Tesla's market capitalisation exceeds $100 billion and continues to meet demand, Musk will be rewarded with about 1.69 million shares, valued at nearly $938 million at the $554.82 share price required for a market capitalisation of $100 billion.