February 12, 2018
David Teigman comments on Tesla CEO Elon Musk’s aggressive 10-year performance plan announced by the board in January. Pending the plan’s approval, Musk could be entitled to a total of $55 billion over 10 years. However, to be entitled to the payout he must meet a series of aggressive market capitalization, revenue and adjusted EBITDA targets tied to 12 tranches of stock options.
Excerpts from “Tesla Pay Plan Offers Big Vision: Experts,” Agenda/Financial Times, February 12, 2018:
David Teigman, a partner in the executive compensation, benefits and Erisa practice at Cadwalader, Wickersham & Taft, says options can be attractive to companies that are short on cash.
Teigman says companies must master the “balancing act” between looking at the long term while also remaining nimble. “Going past three to five years is difficult because companies want to remain nimble and the business itself could change. If the business changes, the board needs the rest of the compensation plan to have different goals to align with those business changes,” Teigman says.
our latest insights on the impact of COVID-19 to help you navigate this unprecedented environment.
Learn more about the event and watch the on-demand replay here.
Selections to the Lawdragon 500 are limited to no more than 500 lawyers in the country.
Making a Mark on Our Communities: Pro Bono Report 2020