Elon Musk’s annual salary from Tesla is less than $40,000, but that doesn’t mean the company founder will have to scrimp. With stock options tied to performance goals, Bloomberg reports that Musk is ahead of pace toward receiving compensation of $1.6 billion.
Musk reportedly has until 2022 to meet a variety of goals including developing new vehicles and ramping up production. According to a proxy statement released April 15, he has already achieved half of those goals, set in 2012.
“Under the 2012 stock plan, Musk earns 1/10th of the options every time Tesla hits a pair of goals — one tied to its market value and another to the company’s operations,” Bloomberg reports. “While he’s achieved seven targets tied to the growth of Tesla’s market capitalization, he’s only hit five of 10 operational ones.”
The report notes that if Musk had cashed out at Friday’s close on the options he has earned so far, they would have been worth $589 million.
Tesla is currently taking advance orders on the mass-market Model 3, which has been previewed but isn’t expected to arrive until at least late 2017. The car will carry a price tag in the $35,000 range.