Stockholders approve Tesla CEO pay

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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 auto company.

Moreover, Chanos said, the SolarCity acquisition of which KA was short "was going bankrupt" because "they got the market wrong" and "out of the blue Mush decided Tesla should buy SolarCity for United States dollars 8 billion" although SolarCity "was losing USD 300 million in negative EBIT a year before the debt service and depreciation". He also runs the private space firm SpaceX.

A Tesla spokesperson confirmed the result after a shareholder vote on Wednesday.

According to sources from the electric auto-industry, senior officials in Israel's Transportation Ministry held talks in recent months with Musk on the possibility of bringing the automatic Tesla cars to Israel.

Shares traded higher following news of the vote. (NASDAQ:UEPS), we can see that 1 have rated the stock a Strong Buy or Buy, based on data provided by Zacks Research.

"Even when annualized, Musk's pay opportunity would dwarf that of almost every CEO at the largest and most profitable public companies". Instead, he'll get awarded shares by meeting a pair of benchmarks. Additionally, a series of executive exits in the past year has left Tesla without a clear No. 2 - a potential concern even if Musk stays front and center. Several top executives have left the company lately, calling into question what Tesla would do if Musk chose to do something else.

Tesla has said the pay package would be key to achieve its road map, what it calls its "Master Plan, Part Deux". In 2016, Musk said he was working so hard, he kept a sleeping bag in a conference room adjacent to Tesla's production line in Fremont.

If that comes to pass, it would presumably add a nice boost to Musk's fortune, which Forbes estimates at $20.1 billion. Tesla had said Musk and his brother, who's a company director, wouldn't vote their shares.

Tesla stressed that Musk will "receive no guaranteed compensation of any kind - no salary, no cash bonuses, and no equity that vests simply by the passage of time".

The new package, using shares which "vest" based on certain criteria, is modeled on a similar deal created in 2012, after which Tesla's market value increased by more than 17-fold.

"Even in consideration of the significant and perhaps historic achievements that would be required for Musk to ultimately realize the full award value, we consider that the design and terms carry a number of risks that, when coupled with the unparalleled magnitude, overshadow the underlying rationale for the grant", ISS stated.

Large shareholders including Baillie Gifford & Co. and T. Rowe Price Group Inc. signaled ahead of the vote that they would probably support the package.

"Other top investors did not immediately comment on Wednesday".

The vote came as Tesla shares entered a bear market, with the stock down roughly 20% from its 52-week high. "We believe the final plan is well aligned with shareholders' long-term interests", the company said in a statement. "The true shareholders of Tesla are all in on Elon".

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