Tesla shareholders approve multibillion-dollar Musk pay

Posted March 24, 2018

Tesla Inc shareholders approved a compensation package potentially worth US$2.6 billion (RM10.2 billion) for Chief Executive Elon Musk yesterday in a test of their confidence in the leader of the electric vehicle company.

The person, who did not want to be identified because officials vote results have not been released yet, says the approval was by a large margin. Including the Musk votes, the award passed with about 80 percent support, Tesla said in a Securities and Exchange Commission filing.

If achieved, the award surpasses anything previously granted to top U.S. executives, according to proxy advisory firm Institutional Shareholder Services, which had recommended votes against the compensation.

The reason for Musk's visit is now unknown, but according to a Sunday post on his Instagram account, the billionaire-engineer is, "Learning how to pour flaming absinthe over a tower of glasses in a Jerusalem speakeasy".

The compensation package could net Musk even more in coming years.

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.

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As Electrek reports, the latest version for the Tesla iOS app (v3.3.3) was released today and unlocks Siri for the Model 3, as well as fixing a number of bugs in the app and adding some minor unspecified improvements.

It could net Musk more than $50 billion if he meets 12 milestones including increasing the company's market capitalization tenfold to $650 billion. "The shareholders get 99%, Elon gets 1%", Mr Gracias said.

"The absolute costs to shareholders of this grant if approved and earned are substantial, but the amount of share capital used is even more eye watering on a relative basis", the firm said. Plus the company's solar roofs will have to be successfully integrated into its energy storage business.

"Investors aren't bothered by the fact that Tesla lost more money than people thought they would, or have had continued Model 3 misses", Loup Ventures managing partner Gene Munster told CNBC. The company now is trying to raise production to meet demand of its Model 3, a mass-market electric vehicle that starts at $35,000. "Our goal is, we'll be able to do a demonstration guide of full autonomy all the way from LA to NY".

A year later, the automaker had over 18,000 employees worldwide before adding 700 engineers and technicians in Germany and China with the acquisition of Grohmann Engineering and over 12,000 employees in the USA and 300 in Mexico, Canada and China with the acquisition of SolarCity.

"Throughout all of this, Musk must remain either CEO or executive chairman and chief product officer".

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Musk's 2012 award depended on the company successfully building and mass-producing electric cars while simultaneously growing its market value.

Musk and his brother, Kimbal, both members of the board, have recused themselves from the vote.

Watch Tesla's stock price move in real time.

"You can't be a Tesla shareholder if you don't believe in the company and Elon Musk", he said in an interview. "It's so awful, you can't believe it", said the man who harbors has got plans soon to be hatched for creating habitable colonies on distant planets.

"I feel pretty good about this goal", Musk said at the time.

In the end, "Musk basically saved his own equity investment by having Tesla buy him out which I just think is abhorrent", said Chanos. In short, Musk has "succeeded in a public vehicle to keep selling a dream and when the dream was kind of become a little bid mundane he sells you the next dream but he's raising lots and lots of money", explained Chanos who strongly believes that since it's in a capital intensive business, Tesla is definitely struggling and losing money selling its Dollars 100,000 cars. "He'll come as close to winning as he can".

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The approving vote took place at Tesla's annual shareholders meeting in California.