Dwarfing Cook’s Grant
Tesla valued the award at $2.6 billion, even after applying a discount to the value because Musk can’t sell any shares for at least five years after he exercises his options. The 10-figure award dwarfs other mega-grants offered in recent years, including the $376 million in stock Apple Inc. granted to CEO Tim Cook in 2011, and the more than $100 million packages Oracle Corp. awarded to three executives in September.
If the award fully vests, Musk would own a 28 percent stake in the company worth about $184 billion, vaulting him to the top of the Bloomberg Billionaires Index. Amazon’s Jeff Bezos currently sits atop the index with a $111.5 billion net worth as of Monday’s close in New York. Musk’s stake in SpaceX constitutes about half of his current net worth of $21.5 billion.
“Musk’s goal is not to just electrify Silicon Valley, or CA, or the U.S. He wants to electrify the world,” James Albertine, a Consumer Edge Research analyst, wrote in a report to clients. He said Tesla’s proposed compensation package “goes a long way to accomplishing such a task.”
This article was provided by Bloomberg News.