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Comment on What are the practical effects of the recent court ruling nullifying Musk's Tesla pay package?

From the NYTimes::

ordered Tesla to cancel stock options awarded to Mr. Musk, the electric car company’s chief executive, worth about $50 billion.

So yep. Got it. Needs to pay it back

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zkfcfbzr@lemmy.world ⁨9⁩ ⁨months⁩ ago
Your article says:

As part of a compensation package Tesla finalized in 2018, Mr. Musk received options to buy 304 million shares that are now worth more than $50 billion. While he has met the goals needed to receive those options, Mr. Musk does not appear to have converted them into shares of Tesla. If he had, he would be barred from selling them for five years.

What are options? Does this mean he didn’t receive this compensation yet, and now he simply won’t receive it, assuming the company doesn’t appeal or move states like the article mentions? It says he had the option to buy 304 million shares - I assume he can buy them at a deep, deep discount compared to their current price?

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- 520@kbin.social ⁨9⁩ ⁨months⁩ ago
  
  What are options?
  
  It's a form of contract that allows (but does not obligate) a person to buy X amount of shares for Y price, regardless of the market rate.
  
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  - zkfcfbzr@lemmy.world ⁨9⁩ ⁨months⁩ ago
    So since he hasn’t executed on the options, there’s nothing he has to actually pay back, but he also won’t be allowed to exercise those options and purchase what would have been $56 billion worth of dirt cheap stocks?
    
    I also assume that calculations of his net worth did take the options into account, so assuming the order stands, it’s effectively an immediate $56 billion hit to those calculations?
    
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    520@kbin.social ⁨9⁩ ⁨months⁩ ago
    
    So since he hasn’t executed on the options, there’s nothing he has to actually pay back, but he also won’t be allowed to exercise those options and purchase what would have been $56 billion worth of dirt cheap stocks?
    
    Yes. Options have expiry dates. Him letting the options expire cuts off those cheap stocks for him.
    
    Net worth calculations take all known assets into account, this includes options.
    
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