Elon Musk

Tesla Shareholders Consider $2.6B Compensation Package For Elon Musk

Tesla Inc.'s shareholders are considering a proposal to award CEO Elon Musk a $2.6 billion compensation package, and two of the Palo Alto-based company's largest shareholders are backing it, according to a report from Bloomberg News.

The proposed package, what the company's board says is a show of confidence that the electric car maker wants to keep Musk as its top executive for the long term, will go to a vote at a special shareholders meeting March 21, Bloomberg News reported.

Baillie Gifford & Co. and T. Rowe Price Group, which collectively own about 14 percent of Tesla, have indicated to Bloomberg News they'll vote in favor of the proposal.

Neither Musk, who owns about 20 percent of Tesla, nor his brother Kimbal will vote on the proposal, Bloomberg News said.

The compensation package consists of 20.3 million stock options that will vest in 12 increments if market-value thresholds and other financial targets are met, Bloomberg News reported.

Tesla posted a record quarterly net loss of $675 million in the fourth quarter of fiscal 2017, its most recent earnings report, and lost $1.96 billion in the fiscal year.

The company has yet to turn a full-year profit since it went public in 2010.

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