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18/06/24
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Sources Reveal Musk Plans to Give Tesla’s High Performers Stock Option Grants
According to two sources who saw an internal memo on Monday, Tesla CEO Elon Musk told employees that the EV maker was working on stock-based compensation for high performing employees.
This news came mere days after Musk gained shareholder approval for his $56B pay plan and 2 months after he announced job cuts of more than 10% of Tesla’s workforce globally due to increasing price competition from rivals in China and slowing demand for EVs.
According to the two sources, Musk said in an email Tesla would during the next several weeks be doing a review to reward exceptional performance with stock option grants. The sources did not want to be named as the memo was for internal use.
The email also said there would be an ongoing program to award spot option grants to individuals who did something outstanding for Tesla. Musk thanked staff for everything they’re doing to make Tesla successful.
According to people familiar with the matter, last year, Tesla skipped merit-based stock awards to employees. Tesla’s margins declined due to the firm’s aggressive price cuts meant to revive demand and fend off competition.
Since the beginning of this year, Tesla shares have dropped 25% and the firm has warned of a sharp decline in sales.
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