Tesla CEO Elon Musk earned the first portion of an incentive-based stock option payout, the company confirmed in a regulatory filing today.
Based on terms in the filings, Musk will receive the first tranche for keeping the company’s market capitalization at $100 billion along with other revenue milestones.
A Tesla stockholder is challenging the compensation plan, alleging it is excessive and a breach of board members’ fiduciary duty.
Musk does not take a salary at this point. He owned about 18.5% of the company as of May 1, according to FactSet, a stake worth around $24 billion. By Thursday, the proxy filing revealed, Musk’s stake in the company had risen to 20.8% — a total of 38.7 million shares, including 18.5 million used as collateral for the CEO’s personal debt. His full award is set to vest over 12 tranches with different milestone requirements, reaching up to $650 billion in market capitalization for Tesla.