Tesla is in line for mega-pay deal

Published: Wilson Clark

On: Mar 2018

The well-known electric carmaker is facing pressure on a number of issues. Earlier this month, the industry has called a special meeting for the investors to vote on ten year compensation plan for  the CEO Elon Musk.

Under this plan, the CEO of Tesla Elon Musk could be able to get stock awards which are worth an estimated $ 2.6bn. The amount is considered to be the largest in the history of the USA.

The grants would be distributed if the company has made consistent losses & garnered certain milestones. The major Tesla stock holders such as investment company Baillie Gifford and T Rowe Price have stated that they intend to support the plan in order to provide a vote of confidence.

The advisory groups of shareholder have urged against the proposal by calling it is as generous. The vote is named as Tesla resist several years of climb up questions related to its operations.

Tesla is likely to reveal mega-pay deal

The investors are restless about the delays in the model 3 cars production which a brand new model is assumed to target a great mass market clientele.

The regulators of the America have raised too many questions about the financial disclosures of the firm. While, some stakeholders have complained about the independence of the board.

Apart from the financial world, people have claimed concerns regarding the autopilot features of firm and the workers have complained about the abrupt dismissals & unfair work environment.

Tesla has told that, all these blames are without merit & high public profile gets it a target. A large number of the shareholders lawsuits have been dismissed.

But several financial experts are raising warning that the organization is losing place against rivals. Since the month of June, the share prices have sunk, though they remain almost 25 % higher than a year ago.

The recent surveys recommend that the public remains very much enthusiastic about Tesla, even though their issue may be having too many effects.