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.


Apple reassures customers after reported hack by Australian teen

Updated 54 sec ago
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Apple reassures customers after reported hack by Australian teen

SYDNEY/SAN FRANCISCO: Apple said on Friday no customer data was compromised after Australian media reported a teenager had pleaded guilty to hacking into its main computer network, downloading internal files and accessing customer accounts.
The boy, 16, from the southern city of Melbourne, broke into the US computer giant’s mainframe from his suburban home many times over a year, The Age newspaper reported, citing statements by the teenager’s lawyer in court.
The teen downloaded 90 gigabytes of secure files and accessed customer accounts without exposing his identity, the paper said.
Apple contacted the US Federal Bureau of Investigation when it became aware of the intrusion, The Age said, quoting statements made in court. The FBI then referred the matter to the Australian Federal Police (AFP).
The report said an AFP raid on the boy’s family home produced two laptops, a mobile phone and a hard drive that matched the intrusion reported by Apple.
The sensitive documents were saved in a folder called “hacky hack hack,” the report said.
It said the boy had boasted about his activities on the mobile messaging service WhatsApp.
An Apple spokesman said the company’s information security personnel “discovered the unauthorized access, contained it, and reported the incident to law enforcement” without commenting further on the specifics of the case.
“We ... want to assure our customers that at no point during this incident was their personal data compromised,” the spokesman said.
The AFP declined to comment because the matter was before the court. A court spokeswoman also declined to comment other than to say the teenager would be sentenced on Sept. 20.
The boy’s name could not be made public because he was a juvenile offender.