[TechWeb] News on November 4, according to foreign media reports, Musk’s salary plan, which has suffered setbacks this year, will reach its final conclusion at the end of this year.
Delaware Judge Kathaleen McCormick has said that it will be A ruling will be made at the end of this year.
According to foreign media reports, Katherine McCormick announced last Thursday that she would make a ruling this year and would make a ruling on whether to give Musk a high salary before 2025.
, Musk’s salary plan, which suffered setbacks this year, was a 10-year salary plan that Tesla decided to grant him in 2018.
It was proposed by the board of directors at the beginning of the year.
At that time, it was decided to grant him 20.
264 million shares linked to market value and performance.
Stock options (increased accordingly after the stock split), without any salary or cash incentives.
Based on the stock price at the time of the announcement of the salary plan, the nominal value of Musk’s 10-year salary was US$2.
6 billion, but if all of it was obtained, the stock price would rise sharply, and the value of stock options would exceed US$56 billion.
Although the salary plan given at that time was very high after it was fully realized, Tesla’s situation in 2018 was far from what it is now.
When the salary plan was approved, Tesla’s market value was less than US$70 billion, which was far from the salary plan.
There is still a gap between the minimum requirement of US$100 billion, which is even higher than the US$650 billion required for full realization.
Tesla’s performance is also far from the minimum requirement of the salary plan.
However, in the years after the approval of the salary plan, Tesla has developed rapidly and its market value has increased significantly, exceeding US$1,000 billion in October 2021.
Driven by the significant increase in Model 3 and Model Y production, Tesla’s performance has also improved significantly, revenue has increased, and profit has been achieved.
In 2022, profit before interest, tax, depreciation and amortization is US$19.
186 billion, exceeding the US$14 billion requirement for the last level of profit in the salary plan.
The requirements of Musk’s ten-year salary plan have been fully met in terms of market value and performance.
Musk’s salary plan encountered setbacks because a shareholder sued him saying it was unfair.
Delaware judge Katherine McCormick supported the shareholders ‘demands in a ruling in January this year, and the salary plan was shelved.
After the judge gave an unfair ruling, Tesla once again submitted Musk’s salary plan to the shareholders ‘meeting for a vote.
At the shareholders’ meeting in June this year, the salary plan was approved.
Although Tesla shareholders voted to approve Musk’s salary plan at the shareholders ‘meeting in June this year, Judge Katherine McCormick, who overturned his salary plan in January, will still decide whether to ultimately give him corresponding salary.
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