Uber, CEO Khosrowshahi 'unlocks' $136 million in shares
Performance target achieved, resulting in a valuation of $120 billion for the alternative mobility company
1' min read
1' min read
Uber CEO Dara Khosrowshahi has received options to purchase shares worth around $136 million after achieving a performance target that resulted in a $120 billion valuation for the company. This was revealed by the Financial Times.
The premium, set before Uber's IPO in 2019, seemed unlikely to be reached as the gig economy platform struggled with persistent losses amounting to tens of billions of dollars.
But Uber's results have recently improved under Khosrowshahi's leadership. In a recent document, the company stated that the CEO's performance target was met after its share price averaged at least $120 billion on a fully diluted basis in the 90 trading days to 6 February.
Khosrowshahi was hired in 2017 by Expedia, where at the time he was the best-paid CEO in the S&P 500 index. To compensate for the $160 million in options he gave up by leaving Expedia, Uber agreed that he would receive options on 1.75 million shares if the $120 billion target was met and if he stayed on for five years. Other executives also received potentially multi-million dollar compensation linked to the threshold. The company said the package was 'necessary given the challenges Uber faced in 2017 and the critical role it would play in Uber's transformation plan'.
