- Uber CEO Dara Khosrowshahi was offered a large amount of stock after meeting performance goals.
- The stock is valued at more than $130 million.
- He has helped lead the ride-hailing giant's turnaround over the past year.
After raising Uber's valuation to more than $120 billion, CEO Dara Khosrowshahi just seized the opportunity to buy a huge stake in the ride-hailing company.
Khosrowshahi's offer comes after he exceeded the goals he set in his 2017 equity incentive plan, according to a filing with the Securities and Exchange Commission earlier this month.
The filing said Mr. Khosrowshahi would be offered a stake if Uber reaches an average valuation of $120 billion over a 90-day trading period.
The feat was accomplished on February 6, when Mr. Khosrowshahi was granted an option to buy 1.75 million Uber shares with an exercise price of $33.65, according to the filing. It will cost Mr. Khosrowshahi about $59 million to buy his stake.
Uber is currently trading at around $78, which means the stock is worth about $136.5 million.
Mr. Khosrowshahi plans to take advantage of the stock offer, but not within the next 90 days, according to the filing.
As noted by the Financial Times, this goal was set before the company's IPO in 2019. And while Uber struggled shortly after it went public, Khosrowshahi led a turnaround over the past year by cutting costs, abandoning non-core businesses like self-driving cars and finding new revenue streams in advertising. contributed to.
Earlier this month, Khosrowshahi announced Uber's first annual operating profit of $1.1 billion and unveiled a $7 billion stock buyback plan to investors.
Tony West, Uber's chief legal officer, and Nikki Krishnamurthy, chief human resources officer, also received the right to purchase a combined 500,000 shares of Uber stock under the incentive plan.
The Financial Times noted that Khosrowshahi's package was not unique among tech leaders. Alphabet CEO Sundar Pichai received $226 million in 2022 thanks to hefty stock compensation, while Amazon CEO Andy Jassy is set to take over from founder Jeff Bezos. Obtained $200 million worth of stock.
Correction: February 29, 2024 — A previous version of this article incorrectly stated the value of the stock granted to Andy Jassy when he became Amazon's CEO. It was $200 million instead of $200. The article also incorrectly stated the terms under which Dara Khosrowshahi would be offered a share buyback. Uber was not required to maintain an average valuation of $120 million over a 90-day trading period; instead, it was required to maintain a valuation of $120 million. This article has also been updated to clarify how many shares Uber executives Tony West and Nikki Krishnamurthy have options to buy.
