Shareholders approve Musk's huge pay after, Tesla is said to be giving stock rewards to high-performing employees

Zhitong
2024.06.18 07:28
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Tesla CEO Musk announced that high-performing employees will be provided with stock compensation, a move approved by shareholders. Despite a decline in sales and stock price fluctuations, investors have full confidence in Musk's leadership. Tesla also plans to relocate its headquarters from Delaware to Texas. The company recently announced a layoff plan, but Musk stated that outstanding employees will be rewarded with stock options. Tesla's stock price has dropped by 25%, and sales are expected to slow down. Tesla shareholders are confident in the company's future development

According to the information obtained by Zhitong Finance and Economics APP, it was revealed by informed sources that Elon Musk, the CEO of Tesla (TSLA.US), announced to employees on Monday that the company will provide stock compensation for high-performing employees. This news has caused widespread attention within the company. This move comes shortly after Musk's $56 billion stock option compensation plan was approved by shareholders, and shareholders also supported the proposal for the company to relocate its headquarters from Delaware to Texas. Despite a recent decline in sales and significant stock price fluctuations, investors still have confidence in Musk's leadership.

In January of this year, a court in Delaware questioned Musk's compensation plan, deeming it "excessive." Judge Kathaleen McCormick pointed out that Tesla's board members lacked the necessary independence to negotiate fairly with Musk and failed to provide comprehensive information before the shareholder vote.

At the recent annual shareholders' meeting, shareholders voted on multiple proposals, including the relocation of the company's headquarters, and ultimately supported these proposals. This decision reflects shareholders' confidence in Tesla's future development.

However, facing slowing demand in the electric vehicle market and price pressure from Chinese competitors, Tesla announced a layoff plan two months ago, affecting over 10% of the total global workforce.

According to internal sources, Musk stated in an email that Tesla will conduct a comprehensive review in the coming weeks and provide stock options to outstanding employees. The email stated, "We will also provide stock option rewards to those who have made outstanding contributions to the company. Thank you for everything you have done for Tesla's success."

It is reported that Tesla did not issue performance-based stock awards to employees last year, and the company significantly reduced prices to stimulate demand and counter competition, impacting profit margins. Since early 2024, Tesla's stock price has fallen by 25%, and the company has warned of a significant slowdown in sales.

Tesla has not yet responded to this matter. The introduction of this compensation plan undoubtedly brings new incentives to Tesla employees and injects new vitality into the company's future development

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