![]() In November, Bezos announced plans to donate the majority of his fortune to charity, a commitment he had until recently shied away from. He's also been busy trying to get his $500 million under-construction megayacht past a historic Dutch bridge and enjoys traveling the globe with girlfriend Lauren Sanchez. Nowadays, the 58-year-old is focused on his other endeavors, including his space exploration company Blue Origin that recently flew actor William Shatner to the edge of space as well as The Washington Post, which he bought in 2013. Recent years have brought him a high-profile divorce, a trip via spaceship to the edge of space, his firm's skyrocketed share price during the pandemic, and his departure from the role as CEO of the company he founded 28 years ago. ![]() It often indicates a user profile.īillionaire Amazon founder Jeff Bezos has become one of the wealthiest and most recognizable figures in the tech world. ![]() CNBC's Lora Kolodny contributed to this report.Account icon An icon in the shape of a person's head and shoulders. In March 2018, Tesla's board of directors granted him an unprecedented "CEO Performance Award" consisting of 101.3 million stock options (adjusted for the 5-for-1 stock split in 2020) in 12 milestone-based tranches. Musk is still racking up options beyond those granted via Tesla's 2012 pay package. ![]() When asked at the Code conference about borrowing against such volatile shares, he said, "Stocks don't always go up, they also go down." Yet he has already pledged 92 million shares to lenders for cash borrowing. Musk, of course, could also borrow more against his Tesla shares, which now total over $200 billion. a huge block of options will sell in Q4 - because I have to or they'll expire." Since CEOs have limited windows in which to sell stock, and Musk would likely want to stagger the sales over at least two quarters, analysts and tax experts have been expecting Musk to start selling in the fourth quarter of 2021.Īt an appearance at the Code conference in September, Musk said: "I have a bunch of options that are expiring early next year, so. I only have stock, thus the only way for me to pay taxes personally is to sell stock." But he tweeted: "Note, I do not take a cash salary or bonus from anywhere. Musk hasn't confirmed the size of the tax bill. So the total tax bill on his options, at the current price, would be $15 billion. He will also have to pay the 13.3% top tax rate in California since the options were granted and mostly earned while he was a California tax resident.Ĭombined, the state and federal tax rate will be 54.1%. Since the options are taxed as an employee benefit or compensation, they will be taxed at top ordinary-income levels, or 37% plus the 3.8% net investment tax. Yet in order to exercise them, Musk has to pay the income tax on the gain. The options expire in August of next year. Any such sales could cause the price of our common stock to decline further." Musk may be forced by one or more of the banking institutions to sell shares of Tesla common stock to satisfy his loan obligations if he could not do so through other means. The company has also recently disclosed that Musk has taken out loans using his shares as collateral, and with the sales, Musk may want to repay some of those loan obligations.Īs Tesla noted in its third-quarter Securities and Exchange Commission 10-Q filing this year: "If the price of our common stock were to decline substantially, Mr. Tesla shares closed at $1,222.09 on Friday, meaning his gain on the shares totals just under $28 billion. The 2012 award was for 22.8 million shares at a strike price of $6.24 per share. Because he doesn't take a salary or cash bonus, his wealth comes from stock awards and the gains in Tesla's share price. Musk was awarded options in 2012 as part of a compensation plan. The reason: a looming tax bill of more than $15 billion. No matter the results of the poll, Musk would have likely started selling millions of shares this quarter. The Tesla CEO said he would "abide by the results of this poll, whichever way it goes." The results were 58% in favor of selling and 42% against, suggesting he will sell the shares. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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