Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Tesla    TSLA

TESLA (TSLA)
My previous session
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets
OFFRE

Tesla : $2.6 billion stock award for Musk is too high - ISS

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/09/2018 | 12:57am CEST
FILE PHOTO - Elon Musk, founder, CEO and lead designer at SpaceX and co-founder of Tesla, speaks at the International Space Station Research and Development Conference in Washington

(Reuters) - Proxy advisory firm Institutional Shareholder Services on Thursday recommended Tesla Inc stockholders reject a multi-billion-dollar, 10-year pay package for Chief Executive Elon Musk, saying the "unprecedented" award was too rich.

(Reuters) - Proxy advisory firm Institutional Shareholder Services on Thursday recommended Tesla Inc stockholders reject a multi-billion-dollar, 10-year pay package for Chief Executive Elon Musk, saying the "unprecedented" award was too rich.

The compensation arrangement announced in January involves no salary or cash bonus but sets up rewards for Musk based in part on electric vehicle maker Tesla's market value rising to $650 billion over the next 10 years, from around $56 billion currently.

Palo Alto, California based Tesla is under pressure as its much-anticipated Model 3 sedan has already missed several key production targets.

ISS calculated the award was worth $3.7 billion on the grant date, compared with the $2.6 billion projected by Tesla. It joins advisory firm Glass Lewis in recommending against the proposal.

Tesla shareholders are due to vote on March 21, and the company needs majority approval for the proposal to go through. The company declined to comment.

The award "locks in unprecedented high pay opportunities for the next decade, and seemingly limits the board's ability to meaningfully adjust future pay levels in the event of unforeseen events or changes in either performance or strategic focus," ISS said on Thursday.

The advisory firm also flagged that a big part of the award could be earned even if Tesla, which reported its worst ever loss in the fourth quarter, does not sustainably make profits in the future.

"Musk's financial interests are already strongly aligned with Tesla; it is questionable whether an additional $2.6 billion grant is necessary or appropriate to further align his interests when he already owns a 22 percent stake in the company," ISS added.

Some analysts have questioned whether billionaire Musk's other interests, from space exploration to tunnel boring technology, are a distraction at what is seen as a critical time for Tesla.

Musk took to Twitter on Thursday to call on U.S. President Donald Trump to challenge Chinese auto trade rules.

Tesla shares were down half a percent at $327.25 after markets closed on Thursday.

(Reporting by Arjun Panchadar and Nivedita Bhattacharjee in Bengaluru; Editing by Peter Henderson, Shounak Dasgupta and Cynthia Osterman)

By Nivedita Bhattacharjee

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TESLA
04:29aTESLA : Experts discuss the future of autonomous vehicles
AQ
09/25TESLA : to build own car carriers
AQ
09/25TESLA : to build own car carriers
AQ
09/25ELON MUSK TO TESLA OWNERS : I want you (to help with new car buyers)
AQ
09/25SHAREHOLDER ALERT : Labaton Sucharow Files Securities Class Action Lawsuit Again..
BU
09/25TESLA : Saudi Arabia wealth fund injects $1 billion into Tesla rival
AQ
09/25TESLA : (Almost) automated driving among features in this year's luxury cars Alm..
AQ
09/25TESLA : Saudi Arabia invests more than $1bn in electric carmaker Lucid Motors
AQ
09/25TESLA : is making its own car carriers
RE
09/24TESLA : Pomerantz Law Firm Reminds Shareholders with Losses on their Investment ..
AC
More news
News from SeekingAlpha
09/25Electrify America and Lucid to partner 
09/25Tesla's Supercharger Moat Is Under Siege 
09/25TESLA Q3 : How Many Model 3s? 
09/25Instagram Founders Out At Facebook (Wall Street Breakfast Podcast) 
09/25Are We Sure General Motors Is A Good Value? (Podcast) 
Financials ($)
Sales 2018 20 324 M
EBIT 2018 -401 M
Net income 2018 -1 512 M
Debt 2018 8 527 M
Yield 2018 -
P/E ratio 2018 -
P/E ratio 2019
EV / Sales 2018 2,94x
EV / Sales 2019 2,16x
Capitalization 51 123 M
Chart TESLA
Duration : Period :
Tesla Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TESLA
Short TermMid-TermLong Term
TrendsNeutralNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 24
Average target price 317 $
Spread / Average Target 5,7%
EPS Revisions
Managers
NameTitle
Elon Reeve Musk Chairman & Chief Executive Officer
Deepak Ahuja Chief Financial Officer
Jeffrey B. Straubel Chief Technology Officer
Gary Clark Chief Information Officer
Kimbal Musk Director
Sector and Competitors
1st jan.Capitalization (M$)
TESLA-3.33%51 123
TOYOTA MOTOR CORP-2.44%202 257
VOLKSWAGEN-7.25%89 463
DAIMLER-18.63%70 517
BAYERISCHE MOTOREN WERKE-3.84%63 729
HONDA MOTOR CO LTD-10.42%55 996