Forbes estimates that Tesla CEO Elon Musk was the highest paid CEO in 2020 of all company leaders.
Musk received nearly $ 11 billion in Tesla last year, including various bonuses that were based on the company’s achievement of various stages of market capitalization. In total, the salary package gives Musk the right to buy 101.2 million Tesla shares at an adjusted price of $ 70 per share. Their market value currently exceeds $ 670 per unit. The compensation package is divided into 12 tranches, each of which can only be unlocked when Tesla reaches certain milestones in its operations.
Musk won the first four tranches of the option premium in 2020, when Tesla reached a high market capitalization and the company’s shares rose sevenfold. Thanks to this, Musk’s condition has increased significantly. As of May 1, Tesla’s CEO was the second richest person on the planet with a net worth of $ 182 billion. Now his fortune is estimated at $ 184 billion, and the founder of Amazon and Blue Origin Jeff Bezos (Jeff Bezos) – $ 192 billion.
Each of the options gives Musk the right to purchase 8.4 million shares of Tesla. Forbes estimates he received a total of $ 13.3 billion in stock options last year. The options will cost Musk $ 2.36 billion. Excluding these costs, Forbes estimates that these options increased Musk’s fortune by $ 11 billion.
Thus, Musk’s income is several times higher than the $ 211 million amount received in 2020 by Paycom CEO Chad Richison (Chad Richison, who topped most of the lists of the highest paid companies in 2020.
Musk must own the Tesla shares granted to him for five years. This may be one of the reasons why he does not appear on the lists of the highest paid executives. To date, Musk has received six tranches of option payments worth about $ 33.9 billion. The entire compensation package will bring the Tesla CEO $ 67.9 billion.
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