Dara Khosrowshahi, the current Uber Technologies, Inc. (UBER) CEO, has unlocked options to purchase stock to the value of approximately $136m after taking the company past the $120bn valuation mark. Established before the company’s IPO in May 2019, this performance goal seemed like a tall order as the company consistently battled to find its market footing and lost billions upon billions.
Uber CEO gets $136m in options after surpassing a $120bn valuation
The ride-hailing organisation’s financial results, however, improved with Khosrowshahi at the helm. Before joining Uber, he headed Expedia Group, Inc. (EXPE) and reportedly received the most lucrative salary package in the S&P 500. Khosrowshahi joined Uber in 2017.
Based on information from the Financial Times, Uber indicated in a recent filing that its CEO met the set performance target after equity value stayed at or above $120bn for 90 days up to 6 February 2024. The conditions for this reward were achieving the set valuation and remaining in the CEO position for five years. Uber justified the reward by commenting that it was necessary after the 2017 obstacles and the key part that Khosrowshahi fulfilled in organisational restructuring.
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Uber also announced its first annual operating profit of $1.1bn and a $7bn share buyback programme earlier this month. The company’s chief legal officer, Tony West, and chief people officer, Nikki Krishnamurthy, also achieved their performance targets and unlocked the right to buy shares.
According to the Financial Times, rewards such as these in the tech sector are not uncommon. Sundar Pichai, the Alphabet Inc. (GOOG) CEO, received $226m in 2022, and Andy Jassy, CEO of Amazon.com, Inc. (AMZN), received $200m in stock after stepping into Jeff Bezos’s shoes.
