Similarly, I didn't drill in too much, how is Tesla accessing the shares it agrees to sell to Elon for $350.02 each - through dilution or share buyback or other?
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Mike Smith
Active Member
Tesla’s Pay Deal to Keep Elon Musk: All or Nothing
'Mr. Musk’s to-be-determined declaration has been determined: He told me he had agreed to stay on as chief executive at Tesla for the next decade.'
'Under the terms of the arrangement, even once his shares vest, he has to hold them an additional five years before he is allowed to sell them.'
“If all that happens over the next 10 years is that Tesla’s value grows by 80 or 90 percent, then my amount of compensation would be zero,” he said. (His calculations were based on the stock price at the beginning of this year when the company was worth about $50 billion.)
Still, he contended, “I actually see the potential for Tesla to become a trillion-dollar company within a 10-year period.”
'Mr. Musk’s to-be-determined declaration has been determined: He told me he had agreed to stay on as chief executive at Tesla for the next decade.'
'Under the terms of the arrangement, even once his shares vest, he has to hold them an additional five years before he is allowed to sell them.'
“If all that happens over the next 10 years is that Tesla’s value grows by 80 or 90 percent, then my amount of compensation would be zero,” he said. (His calculations were based on the stock price at the beginning of this year when the company was worth about $50 billion.)
Still, he contended, “I actually see the potential for Tesla to become a trillion-dollar company within a 10-year period.”
RobStark
Well-Known Member
Mike Smith
Active Member
Full description of the compensation package:
TSLA / Tesla Motors, Inc. - TSLA / Tesla Motors, Inc. PRELIMINARY PROXY STATEMENT - Fintel.io
TSLA / Tesla Motors, Inc. - TSLA / Tesla Motors, Inc. PRELIMINARY PROXY STATEMENT - Fintel.io
Yep. Even a company as Tesla has difficulty to recruit, despite being the most realistic way for a blue-collar worker to actually strike it rich with blue collar work. Says more than enough.
jelloslug
Active Member
It was not even close to 40 MPH. Crash tests are performed at ~45 MPH; take a look at the damage from those.
I'll give it a shot.
The shyster is at it again, mixing his latest Kool-Aid batch for his snowflake cult. Flying around in his personal jet as he talks about climate change. Leveraging out his shares that the lemmings keep buying so he can bank coin while his cult crows about him working for nothing. Continuing his Ponzi scheme ever higher as he floods the market with treacherous EVs that can't make it around the corner without crashing or exploding into flames. All the while billions of taxpayer dollars flooding into his pockets so that rich people can buy the dirtiest radioactive cars ever made. Watch the criminals on WS give it a thumbs up so they can swim in their golden coin McScrooge vaults!
This is beautiful!
Whoever knows any of the folks who crafted it, please thank them.
The key element for me is that it replaces the simple, but counter productive, margin metric with earnings.
Earnings as a metric should drive the company toward return on investment, which means revenue and inventory turns. It shifts the incentive toward making more cars, rather than extracting every last penny out of the ones you do make.
This new incentive plan is exactly in line with the purpose of the company, and the motivations of many stock holders - earnings.
This is a really big deal, as incentive alignment accelerates action.
Please thank all involved - for someone that is all in(vested) on Tesla stock, clearing the cross purpose incentive is very reassuring!
DragonWatch
Small FootPrint
Good morning America
Premarket shows skys are green and no clouds And a good morning pop to you Okay, I am up a bit early. Good news that Elon is staying on though
Hey, how about one of those stores that you record your app as you go in and seconds later drive out with your M3?
Premarket shows skys are green and no clouds And a good morning pop to you Okay, I am up a bit early. Good news that Elon is staying on thoughHey, how about one of those stores that you record your app as you go in and seconds later drive out with your M3?
My guess also is the board has visibility into some parts of the near and far future about products that gives them this confidence. After all, they are respected business people and they don't want to look ridiculous with a package that has no chance of being attained. So, for example, my guess is for the near future, they know the numbers and discussions on the semi, roadster, energy, etc. They know that the battery bottleneck at the Gigafactory is likely solved, not just promises of being solved. They know cancellation and new reservation numbers on Model 3. Driving as service. Selling stuff through voice commands in you car. They may have seen Model Y and the pick-up. And they have seen inklings of things in the future that we haven't even heard about yet. This from 2015...
Morgan Stanley Massively Hikes Price Target on Tesla, Says Stock Could Almost Double
Morgan Stanley Massively Hikes Price Target on Tesla, Says Stock Could Almost Double
Text of the email that arrived in investors' mailboxes this morning, since no-one else has posted it so far:
Tesla Announces New Long-Term Performance Award for Elon Musk
Compensation is Tied to Market Capitalization and Operational Milestones that are Based on Tesla Becoming One of the Most Valuable Companies in the World
Tesla CEO Performance Award
Elon Will Continue Leading Tesla Over the Long-Term
PALO ALTO, Calif., Jan. 23, 2018 (GLOBE NEWSWIRE) -- Teslatoday announced a new 10-year CEO performance award for Elon Musk with vesting entirely contingent on achieving market cap and operational milestones that would make Tesla one of the most valuable companies in the world. In order to fully vest, Tesla's market cap would have to grow to $650 billion (an increase of almost $600 billion), and important revenue and profitability goals would also have to be achieved. The award is modeled after Elon's 2012 performance award, which helped bring about a more than 17-fold increase in Tesla's market cap in the five years after it was put in place.
Elon will receive no guaranteed compensation of any kind - no salary, no cash bonuses, and no equity that vests simply by the passage of time. Instead, Elon's only compensation will be a 100% at-risk performance award, which ensures that he will be compensated only if Tesla and all of its shareholders do extraordinarily well. Because all Tesla employees are provided equity, this also means that Elon's compensation is tied to the success of everyone at Tesla.
CEO Performance Award Details
The performance award consists of a 10-year grant of stock options that vests in 12 tranches. Each of the 12 tranches vests only if a pair of milestones are both met.
For each of the 12 tranches that is achieved, Elon will vest in stock options that correspond to 1% of Tesla's current total outstanding shares (1% of that amount is approximately 1.69 million shares). If none of the 12 tranches is achieved, Elon will not receive any compensation.
- Market Cap Milestones: To meet the first market cap milestone, Tesla's current market cap must increase to $100 billion. For each of the remaining 11 milestones, Tesla's market cap must continue to increase in additional $50 billion increments. Thus, for Elon to fully vest in the award, Tesla's market cap must increase to $650 billion.
- Operational Milestones: To meet the operational milestones, Tesla must meet a set of escalating Revenue and Adjusted EBITDA targets (the only adjustment to EBITDA is for stock-based compensation). These milestones are even more directly aligned with shareholder value creation than those used in Elon's 2012 performance award. They are designed to ensure that as Tesla's market cap grows, the company is also executing well on both a top-line and bottom-line basis.
Leading Tesla Through Its Next Phase of Growth
For vesting to occur when the milestones are met, Elon must remain as Tesla's CEO or serve as both Executive Chairman and Chief Product Officer, in each case with all leadership ultimately reporting to him. This ensures that Elon will continue to lead Tesla's management over the long-term while also providing the flexibility to bring in another CEO who would report to Elon at some point in the future. Although there is no current intention for this to happen, it provides the flexibility as Tesla continues to grow to potentially allow Elon to focus more of his attention on the kinds of key product and strategic matters that most impact Tesla's long-term growth and profitability.
Patterned After 2012 Performance Award
This new performance award is similar to the structure of Elon's last compensation award, which was put in place in 2012. Under that plan, Elon was awarded stock options that vested only if the company's market cap continued to increase in $4 billionincrements and if it achieved matching operational milestones, including vehicle production targets and developmental milestones relating to the Model X and Model 3 programs. While these milestones were viewed at the time as very difficult to achieve, all of the market cap milestones and 9 of the 10 operational milestones have been achieved. The 2012 plan formed the biggest part of the executive compensation program that Tesla shareholders overwhelmingly supported in the company's 2014 and 2017 Say on Pay votes. That plan was instrumental in helping Tesla complete the roadmap laid out in its original Master Plan, and in ensuring that Elon only received compensation based on the enormous success of the company, its employees, and all its other shareholders.
As with the 2012 plan and Tesla's original Master Plan, the new performance award has been designed so that Tesla and Elon remain tightly aligned with shareholder interests as they now execute on Master Plan, Part Deux - continuing to build what is the world's first vertically-integrated sustainable energy company, from generation to storage to consumption. Under Elon's leadership, the next phase of Tesla's development involves a number of exciting plans that will further accelerate the advent of sustainable energy. These include expanding solar energy generation through Solar Roof and other solar products and seamlessly integrating them with battery storage, building out the company's vehicle product line to cover all major forms of terrestrial transport, continuing to advance autonomous technology to create a fully-self driving future, and enabling sharing so that your car can make money for you when you aren't using it.
Upcoming Shareholder Vote
The new performance award was created by Tesla's Board of Directors (with Elon and Kimbal Musk having recused themselves) after more than six months of careful discussion and analysis and in consultation with Compensia, Inc., a third-party compensation consultant. Although the Board granted this award to Elon on January 21, 2018, its effectiveness is subject to the approval of Tesla's shareholders, who will be asked to approve it at a special shareholder meeting that will be held in late March. Elon and Kimbal Muskwill recuse themselves from that vote so that Tesla's other shareholders have the opportunity to determine the outcome.
Anyone who is a shareholder of record or beneficial owner of Tesla shares as of the record date (currently projected to be February 7, 2018) will be entitled to vote their shares at the special meeting and the award will only become effective if a majority of the votes cast are in favor of the proposal. Tesla has posted on its website a preliminary proxy statement (bit.ly/CEOPerformanceAward) providing complete details of the award along with additional materials for Tesla shareholders, and Tesla will be filing that with the SEC today.
Additional Information and Where to Find It
Tesla, Inc. ("Tesla") plans to file with the Securities and Exchange Commission (the "SEC"), and furnish to its shareholders a proxy statement in connection with the proposed CEO performance award for Elon Musk (the "CEO Performance Award"). The proxy statement described above will contain important information about the proposed CEO Performance Award and related matters. SHAREHOLDERS OF TESLA ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT TESLA WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT TESLA AND THE CEO PERFORMANCE AWARD. Shareholders will be able to obtain free copies of these documents and other documents filed with the SEC by Tesla through the website maintained by the SEC at www.sec.gov. In addition, shareholders will be able to obtain free copies of these documents from Tesla by contacting Tesla's Investor Relations by e-mail at [email protected], or by going to Tesla's Investor Relations page on its website at ir.tesla.com.
Participants in the Solicitation
The directors and executive officers of Tesla may be deemed to be participants in the solicitation of proxies from the shareholders of Tesla in connection with the proposed CEO Performance Award. Information regarding the interests of participants in the solicitation of proxies in respect of the Special Meeting will be included in Tesla's proxy statement to be filed with the SEC.
Forward-Looking Statements
Certain statements herein, including statements regarding future development plans, are forward-looking statements that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. Various important factors could cause actual results to differ materially, including the risks identified in our SEC filings. Tesla disclaims any obligation to update any forward-looking statement contained in this press release.
A photo accompanying this release is available at Attachment
Investor Relations Contact:
[email protected]
Press Contact:
[email protected]
Source: Tesla, Inc.
Reciprocity
Active Member
You did not cuss nearly enough. I guess being short makes you like to cuss a lot.
I must have missed something big. Why would anyone in or out of TMC trust anything Goldman Sachs would put out?
It hasn't been that long since GS was advising it's clients to invest one way while GS was betting its own funds the other.
Prediction for next time USA Today runs Top 10 dream cars. At 1st place Tesla Model 3. 3 of 10 spots Teslas.
Has anyone done the math yet on what Musk's Tesla related net worth will be should all 10 performance awards be granted?
Enough to colonize Mars regardless if U.S. government covers part of the costs?
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