Tesla investors approve massive pay plan for CEO Musk

Tesla investors approve massive pay plan for CEO Musk

Tesla investors approve massive pay plan for CEO Musk

The tech entrepreneur was worth an estimated $20 billion as of Wednesday, according to Forbes.

"The grant gives Musk $2.6 billion in stock options in 12 tranches that each vest as the company hits key performance milestones over 10 years", CNBC reported.

The package-arguably the largest-ever of its kind-underscores the company's outsize ambitions and how intimately connected its future success is to Musk. Spokesmen for both companies didn't immediately reply to requests for comment.

The shareholders meeting took place Wednesday morning near San Francisco.

Musk's new compensation could increase the percentage of Tesla stocks he owns from 21.9 percent to 28.3 percent.

The vote was contentious, with a proxy advisory firm opposing the package and large institutional investors supporting it.

Under the proposed terms, Musk would earn one-12th of the options every time Tesla hits a pair of goals: one tied to its market value and the other linked to either revenue or earnings excluding certain charges.

Tesla would likely regard any result above 70 per cent support for Musk's compensation as a win, reflecting agreement from most investors, said compensation consultant Brent Longnecker.

Ryan warns White House against firing Mueller
According to the chart and science, Trump's tweets on Mueller have increased infinitely over the past week. If that is the case, allowing Mueller to finish his investigation would provide vindication.

Tesla Inc (NASDAQ:TSLA) has approved CEO Elon Musk's pay package, according to sources close to the company. That's an astronomical sum, compared to what other USA executives make. Musk's bold promises aside, Tesla remains committed to the advancement of self-driving technologies. Does he really need more money? That's led some to question whether the largest award in corporate history is needed to make sure he remains focused on the business.

The awards involve stock options in 12 tranches - and for the first, Tesla must rise to $100 billion. Both are Tesla board members.

ISS, in recommending against the plan, wrote that Musk could get a substantial portion of the award even if Tesla doesn't reach sustained profitability.

"At US$2.6 billion, the grant value is unprecedented and sets the new high-water mark for an individual executive equity award at a US public company", ISS wrote last month, in a recommendation to vote against the package. He also runs the private space firm SpaceX.

Tesla previously collaborated with Israeli company Mobileye but the companies parted ways in 2016 after a fatal crash involving a Tesla Model S using Autopilot, a semi-automated system created to assist with driving but not replace the driver. Musk's potentially huge payout meant extra scrutiny.

Tesla just recently began taking Apple Pay for the $1,000 required to reserve a Model 3.

The votation for Musk's high-stakes, high-reward compensation plan was held at the Tesla Training Center on Fremont, CA, where shareholders voted for or against the 10-year plan.

According to data on Start-up Nation Finder, the database of Startup Nation Central, the Tel Aviv-based company also has offices in NY, and has raised some $60 million dollars, to date.

Related news