Tesla ties CEO Musk’s compensation to company’s performance

Tesla Chief Executive Elon Musk be paid only if the company and all of its shareholders do extraordinarily well. (Reuters)
Updated 23 January 2018
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Tesla ties CEO Musk’s compensation to company’s performance

BENGALURU: Tesla said on Tuesday Chief Executive Elon Musk will receive no guaranteed compensation of any kind, and that he will be paid only if the company and all of its shareholders do extraordinarily well.
The compensation will be based on a combination of market capitalization and operational milestones, the electric carmaker said in a statement.
“Elon (Musk) will receive no guaranteed compensation of any kind — no salary, no cash bonuses, and no equity that vests simply by the passage of time,” the company said.
The new performance award consists of a 10-year grant of stock options that vest in 12 tranches, with each tranche vesting only if both market capitalization and operational milestones are met, the company said.
Tesla said its market capitalization must increase to $100 billion (SR375 billion) for the first tranche to be vested and must continue to increase in additional $50 billion increments.
“Thus, for Elon to fully vest in the award, Tesla’s market cap must increase to $650 billion,” the Palo Alto, California-based company said.
To meet the operational milestone, Tesla must meet a set of escalating revenue and adjusted earnings before interest, taxes, depreciation, and amortization targets, it said.


Britain’s M&S says must accelerate change or die

Updated 23 May 2018
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Britain’s M&S says must accelerate change or die

  • After taking account of adjusted items of 514.1 million pounds, including the charge relating to store closures, pretax profit was 66.8 million pounds, a 62 percent fall
  • M&S is one of the best known brands on British high streets

LONDON: Britain’s Marks & Spencer said on Wednesday it urgently had to modernize or risk fading away as it reported a second straight decline in annual profit and booked a 321 million pounds ($430 million) charge for a store closure program.
The 134-year-old M&S faces unrelenting competition from supermarkets, fashion chains like Zara, H&M and Primark, as well as online giant Amazon, while efforts to revitalize its business are being hampered by ongoing pressure on UK consumers’ spending power.
M&S reset its strategy in November, two months after retail veteran Archie Norman joined as chairman, detailing a five-year program of store closures and relocations, and moves to make its misfiring food business more competitive.
On Tuesday M&S said it would close 100 UK stores by 2022, further accelerating the plan as it strives to make at least a third of sales online.
M&S, one of the best known names in British retail, said it made a pretax profit before one-off items of 580.9 million pounds ($778.6 million) in the year to March 31.
That was ahead of analysts’ average forecast of 573 million pounds but down from 613.8 million pounds made in 2016-17.
After taking account of adjusted items of 514.1 million pounds, including the charge relating to store closures, pretax profit was 66.8 million pounds, a 62 percent fall.
Turnover was broadly flat at 10.7 billion pounds.
“We have to modernize our business to ensure we are competitive and reignite our culture. Accelerated change is the only option,” said M&S.
Shares in M&S have fallen 26 percent over the last year and the firm is in danger of being booted out of the prestigious FTSE 100 index.
The stock closed Tuesday at 292 pence, valuing the business at 4.7 billion pounds.