Tesla CEO Elon Musk’s high-risk, high-reward Performance Award will pass through a vote from the company’s shareholders on March 21, 2018 at 9:00 a.m. PST. The votation will be held in the Tesla Training Center, located at 45201 Fremont Boulevard, Fremont, California 94538.
The announcement was distributed by the California-based electric car maker to its investors recently. According to the investor communication, the Tesla CEO’s new compensation plan will only be fully approved if it gets the majority vote from the company’s shareholders on the March 21 session. Shareholders can vote directly during the special meeting itself or through proxy cards that could be submitted online, through telephone, or through mail.
The March 21 meeting will be a short session for Tesla’s investors. According to the notice sent by the California-based electric car maker and energy firm, there would be no presentations or Q&A sessions during or after the meeting. Due to the short duration of the meeting, the votation will not be livestreamed on the internet as well. Elon, as well as his brother and fellow Tesla board member Kimbal Musk, would not be present at the special shareholders meeting.
The results of the March 21 session will be available on the SEC website (www.sec.gov) within four business days after the votation. Following this timeline, the tally of the March 21 votes would be available for viewing on the government site on March 28, 2018.
Just like the company’s 2012 Performance Award for the CEO, which helped the electric car and energy firm experience a 17-fold increase in market cap, the new compensation plan is specifically designed to reward Musk only if he meets his goals with regards to the growth and development of Tesla. This time around, Tesla is aiming to reach a market cap of $650 billion within the next 10 years, a growth of more than 12 times the company’s current market cap. If Musk manages to pull off this feat, he will place the electric car maker in the same league as powerhouse tech firms like Apple and Google, which have market caps nearing $1 trillion.
As we noted in a previous report, Musk’s new performance award consists of a 10-year grant on stock options that vests in 12 tranches. Each of the tranches vests only if the Silicon Valley-based electric carmaker can meet both the company’s market cap and operational milestones. The next market cap milestone will be reached when Tesla increases to $100 billion. The following 11 milestones would be attained every time Tesla’s market cap grows another $50 billion. For perspective, Tesla’s current total market cap is at roughly $55 billion.
A copy of the recent investor communication can be found here.
Shareholders with specific questions about the March 21 special meeting are advised to call Tesla at (650) 681-5000. Email inquiries can also be submitted on ir@tesla.com.
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