January 23, 2018 / 8:49 AM / a month ago

BRIEF-Tesla Announces New Long-Term Performance Award For Elon Musk

Jan 23 (Reuters) - Tesla Inc:

* TESLA ANNOUNCES NEW LONG-TERM PERFORMANCE AWARD FOR ELON MUSK

* ‍ELON WILL RECEIVE NO GUARANTEED COMPENSATION OF ANY KIND - NO SALARY, NO CASH BONUSES, AND NO EQUITY THAT VESTS SIMPLY BY PASSAGE OF TIME​

* NEW 10-YEAR CEO PERFORMANCE AWARD FOR ELON MUSK WITH VESTING ENTIRELY CONTINGENT ON ACHIEVING MARKET CAP AND OPERATIONAL MILESTONES

* SAYS ‍NEW AWARD IS MODELED AFTER ELON‘S 2012 PERFORMANCE AWARD​

* SAYS ‍ELON‘S ONLY COMPENSATION WILL BE A 100% AT-RISK PERFORMANCE AWARD

* SAYS MUSK‘S ‍NEW COMPENSATION ENSURES THAT HE WILL BE COMPENSATED ONLY IF TESLA AND ALL OF ITS SHAREHOLDERS DO EXTRAORDINARILY WELL​

* SAYS ‍PERFORMANCE AWARD CONSISTS OF A 10-YEAR GRANT OF STOCK OPTIONS THAT VESTS IN 12 TRANCHES​

* SAYS ‍EACH OF 12 TRANCHES (IN THE NEW PERFORMANCE AWARD) VESTS ONLY IF A PAIR OF MILESTONES ARE BOTH MET​

* SAYS ‍IF NONE OF 12 TRANCHES OF MUSK‘S NEW PERFORMANCE AWARD IS ACHIEVED, HE WILL NOT RECEIVE ANY COMPENSATION​

* SAYS ‍NEW PERFORMANCE AWARD WAS CREATED BY TESLA‘S BOARD OF DIRECTORS (WITH ELON AND KIMBAL MUSK HAVING RECUSED THEMSELVES)​

* ‍ALTHOUGH BOARD GRANTED THIS AWARD TO ELON ON JANUARY 21, 2018, ITS EFFECTIVENESS IS SUBJECT TO APPROVAL OF TESLA‘S SHAREHOLDERS​

* ‍TESLA‘S SHAREHOLDERS WILL BE ASKED TO APPROVE MUSK‘S PERFORMANCE AWARD AT SPECIAL SHAREHOLDER MEETING THAT WILL BE HELD IN LATE MARCH​

* SAYS ‍ELON AND KIMBAL MUSK WILL RECUSE THEMSELVES FROM VOTE​ RELATED TO MUSK‘S NEW PERFORMANCE AWARD Source text for Eikon: Further company coverage: ( Bangalore.newsroom@thomsonreuters.com )

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