Elon Musk's Tesla pay package could net him 50 billion United States dollars

Elon Musk's Tesla pay package could net him 50 billion United States dollars

The source who reported the vote count declined to be identified.

Tesla has said in regulatory filings that Musk's award could yield him more than $50 billion if all goals are achieved.

Earlier this month, proxy advisory firm Institutional Shareholder Services recommended Tesla stockholders reject the package, saying the "unprecedented" award was too rich. Musk could own as much as $55.8 billion in Tesla stock and more than a quarter of the electric auto company in the next decade if he hits all targets of the new plan.

As with the 2012 award, the latest pay package ties Mr. Musk's compensation to the company's value reaching certain levels and a series of operational milestones being met. Using the current value of Tesla stock, Musk could add an estimated $2.6 billion to his wealth this year with the new stock package.

To meet the first milestone, Tesla's current market cap must increase to $100 billion.

Tesla, Inc. (NASDAQ:TSLA) try to make new thrust in street and making different trends, stocks trading ended with -0.96% to $310.55. Each time Tesla's market valuation grows $50 billion beyond that, he'll be awarded another same-sized slice of the stock options.

Elon Musk, the entrepreneur behind the ambitious SpaceX and Tesla projects, is now visiting Israel.

Ahead of the vote tally, compensation consultant Brent Longnecker said any result above 70 percent would prompt Tesla to "breathe a sigh of relief". They argue shareholders are likely to benefit from Musk's efforts whether or not he hits the targets.

Musk is also CEO of SpaceX, the commercial rocket maker, and has multiple other ventures, including The Boring Co., which exploring whether burrowing under cities can become a high-speed transportation option. Musk had previously hinted he was considering reducing his responsibilities at Tesla at some point in the next several years. "This is our ambition".

The vote came as Tesla shares entered a bear market, with the stock down roughly 20% from its 52-week high.

But investment firm T. Rowe Price and others supported the package, saying the board addresses Tesla's challenges in the right way by thinking creatively.

But some analysts are sceptical of the plan. Analysts often provide Buy, Sell, or Hold recommendations ratings for companies that they cover.

A statement from CalSTRS' Director of Corporate Governance, Anne Sheehan, read: "Given the size of the award, we believe the potential dilution to shareholders is just too great". "Still, we question why Musk has to be incentivised so highly given his high equity interest in TSLA and risks to his personal reputation".

Two firms that evaluate proxies for investors recommend that shareholders vote against the pay plan, which they say is unprecedented in size for a USA public company. He recently said he has no plans to step down as CEO but could envision one day becoming the head of product development if he can find a suitable replacement for the top job. The 10-year plan won't give the sum to the company's boss in one lump sum and he may not even get all of it as pieces of the plan are incentive-based.

Tesla has said the pay package would be key to achieve its road map, what it calls its "Master Plan, Part Deux".

"Three-quarters of the award may vest even if the company does not meet any of the commensurate adjusted EBITDA hurdles, the only profitability metric included in the plan", the ISS report said. Both are Tesla board members.

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