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Elon Musk receives almost $800 million in the first Tesla compensation award.
The first of 12 stock option awards, signed in 2018, from Tesla CEO Elon Musk, is valued at nearly US$ 800 million and has been unlocked. On Thursday, Musk was informed that it now has the opportunity to purchase 1.69 million shares of its share since Tesla's overall revenue has overshadowed 20 billion dollars during the last four trimesters with a market capitalisation of more than 100 billion dollars.
When Tesla's stock price closed on Thursday, it amounted to $805.81, which equals approximately $1.36 billion.
But Musk only has to pay a "strike price" of $350.02 per share, or a total of about $591 billion, depending on the trigger, so he may net about $770 million.
If Tesla continues to increase inventory prices, and the company achieves additional revenue goals, Musk may pull up some 20.3 million new Tesla shares at that strike price, paving the way for it to collect more than tens of billions of dollars.
Musk doesn't get salary at Tesla and the company categorized the compensation scheme — one of which had been reimbursed in 2012 — as a "at-risk performance award" which "assures [Musk] only if Tesla and all of its shareholders are doing extraordinarily good." Again and again, he points out that his money is reinvested in his own enterprises and is relatively poor in cash. But he also borrows against the holdings of Tesla and puts the money into its companies, so that, in future, the more money he owns the company.
The certificate of award was inserted into the annual "proxy submission" of Tesla, a document setting out what shareholders should expect at the annual meeting of the Company. This year, according to the submission, the meeting will be held on 7 July. Although many companies held online shareholder reunions only during the pandemic, Tesla said they would hold a personal event in addition to a webcast at the Computer History Museum in Mountain View , California. However, the company leaves room for change.
"We will continue to monitor protocols for the public health and safety of travel that federal , state and local governments require or recommend. We will change the date, time , location and/or format of the 2020 Annual Meeting if required or advisable for protecting our staff and stock holders, "writes the company.
At that meeting, the shareholders will have seven voting proposals, the first being Tesla's three. Firstly, the newly announced appointment of Hiromichi Mizuno would be reelected for the board of directors by Elon Musk and Tesla Chairwoman Robyn Denholm. The second is to grant Tesla's executives compensation.
The third is to reappoint Tesla's auditor for PricewaterhouseCoopers LLP.
Proposition four is by James M. Danforth, a shareholder who wants to start Tesla's advertising expenses — something that Musk has not done. Danforth says Tesla must "spend $50 or more per vehicle produced to publicize its products / services, increase brand awareness and product interest, achieve additional goals as set out in the statement to support Tesla 's objectives, objectives and reputation and finances, to mitigate and/or reduce harm."
"While Tesla announced in Q1-19 that they will shut down retail stores and start focusing exclusive on web-based sales, advertising" says Danforth "has been required," Tesla ads "mitigate and dilute large FUD and misinformation campaigns supported by competition and detractors across the whole world," and
"Tesla 's advertising call will lift millions of consumers, many of whom do not know who Tesla is at all, loudly and believably. This invitation to act was never more necessary or important than at present,
Tesla disagrees with the proposal and recommends that the shareholders vote against it. "While we welcome the feedback of stockholders, we believe that we have an experienced management team that is best positioned to determine Tesla's daily business activities, including our sales , marketing and expenses." Tesla also disagrees with Danforth 's evaluation of last year's retail transactions changes.
The fifth proposal is made by James McRitchie, shareholder, who wants to measure these votes with a simple majority — something which he has repeatedly done. Tesla advises that it be voted down.
Nia is writing. Nia is writing. "Tesla, facing allegations of sexual harassment and racial discrimination, is particularly interested in investors' concerns concerning the non-transparent working conditions that allow potential harassment and discrimination. " "
Tesla disagrees and recommends voting against the proposal by the shareholders. It argues that Nia "does not make convincing support for a correlation between arbitration and harassment , discrimination or employee complaint boundary." The firm supports its use of arbitration.
The final proposal is made by the Good Shepherd Province of New York Sisters, who wish to prepare a report on breaches of human rights in companies from which Tesla buys raw materials. Tesla believes that its web site and the company's 2019 version of the Company's Conduct Code and Human Rights and Conflicts Minerals policy go far enough and recommends shareholders vote against this proposal.
