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Tesla developing stock-based compensation for high-performing employees - Reuters

Published 18/06/2024, 10:12
© Reuters.

Tesla (NASDAQ:TSLA) CEO Elon Musk informed employees on Monday that the company is developing a stock-based compensation plan for high-performing staff, Reuters reported Tuesday, citing two individuals who have seen an internal memo.

This move follows Musk's recent approval of a $56 billion pay package consisting of stock options and comes two months after announcing layoffs affecting over 10% of Tesla's global workforce due to declining demand for electric vehicles (EVs) and increasing competition from Chinese manufacturers.

"Over the next few weeks, Tesla will be doing a comprehensive review to provide stock option grants for exceptional performance," Musk reportedly wrote in the email.

“There will also be an ongoing program to award spot option grants for anyone who does something outstanding for the company. Thanks for everything you're doing to make Tesla successful," the email continued.

Insiders revealed that Tesla did not issue merit-based stock awards to employees last year. The company's profit margins suffered as a result of aggressive price cuts designed to stimulate demand and fend off competition.

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