South African-born Elon Musk is probably the most extremely compensated chief govt on the planet, in keeping with Forbes’ calculations. The platform calculates that he was paid $11 billion in 2020 all in Tesla inventory choices awarded to him as a part of the compensation plan he signed with the electrical carmaker in 2018.
Forbes reviews that the plan was price $2.3 billion when it was first signed and was unfold over a decade. Nevertheless, the plan didn’t kick in till 2020. The plan, which was first drafted in 2018, was primarily based on Tesla hitting a breakthrough for market capitalization and earnings earlier than curiosity, taxation, depreciation, and amortization.
Per the pay bundle, Musk is entitled to choices that may enable him to purchase a complete of 101.2 million Tesla shares at a split-adjusted worth of $70 per share. What’s extra, the compensation is split into 12 tranches.
“The primary 4 tranches of Musk’s choices awards vested in 2020, as Tesla hit varied market capitalization and operational milestones and its inventory elevated sevenfold, boosting Musk’s fortune astronomically,” Forbes reviews.
Bloomberg Pay Index reviews Musk’s earnings made him the highest-paid U.S. govt for 3 conservative years. His earnings put him forward of Chad Richison, CEO of Paycom, who earned $211 million in compensation.
In keeping with Forbes, “One caveat, nevertheless, is that Musk should maintain the newly awarded Tesla shares for 5 years, in keeping with filings. So whereas he has the precise to train a complete of 33.77 million choices from his 2020 awards, he can’t instantly flip round and promote these shares.”
In January this 12 months, Musk noticed his fortune rise to $195 billion, making him the richest man on earth, in keeping with Bloomberg Billionaires Index.
The Area X and Tesla founder was pushed to the highest spot after shares in Tesla rose by greater than 6 p.c on the time.
Musk began 2020 price about $27 billion and was not among the many prime 50 richest checklist. Nevertheless, he handed Warren Buffett to turn into the seventh-richest individual in July that 12 months. He gained extra wealth than Invoice Gates to turn into the second-richest individual in November and has since gained extra wealth.
Final 12 months, Musk’s Area X launched two crewed missions to the Worldwide Area Station, the primary of it within the U.S. since NASA retired its area shuttle fleet in 2011, in keeping with space.com. In all, Area X launched 26 missions in 2020.