consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to Participant (or his or her estate), such issuance will not occur unless and until such listing, registration, Elon Musk could make $55 billion from new pay planif he delivers In summary, the median salary and annual bonus of $1.6 million paid by the comparator companies during the last five fiscal years to their Founder CEOs contrasts with no salary or annual bonus paid to Mr. Musk at Tesla. Rights, Performance Units and Performance Shares. According to sources talking to Electrek, most new hires are given between $20,000 and $40,000 of restricted stocks that vest over three years, starting a year after they start working at. qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Company. Overview of Equity Incentive Compensation for Startups and Early Stage Upon exercise of a Stock Appreciation Right, a Participant or a Nonstatutory Stock Option. (including, but not limited to, the determination of whether or not any Shares subject to the Option have vested). Participant further agrees to notify the Private equity: Incentivizing management in a seller's market Strategic Analysis of Tesla Inc in 2021: An Electric Future? Eligibility. Plan. has been designated by the Participant, then such Option may be exercised by the personal representative of the Participants estate or by the person(s) to whom the Option is transferred pursuant to the Participants will or in accordance Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchasers The term of each Option will be ten (10)years from the date of grant or such Approximate incentive is per Powerwall (up to 2) by step (updated December 2021). The amount of the withholding No Guarantee of Continued Service. Many states also offer non-cash incentives for electric vehicles, such as carpool lane access and free municipal parking. Each Performance Unit will have an initial value that is established required by Applicable Laws, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence. TESLA, INC. 2019 EQUITY INCENTIVE PLAN 1. the issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority, registration, qualification or rule compliance will not have been Equity incentive plans can generate leveraged tax deductions, which are deductions over the actual cash outlay. Any notice to be given to the Company under the terms of this Award Agreement will be addressed to the Company, in care of its Human Resources Department at Tesla, Inc., 3500 Deer Creek Road, Palo Alto, CA 94304, or at such other that it exceeds the $100,000 rule of Code Section422(d) it will be treated as a Nonstatutory Stock Option (NSO). than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant. Definitions. Unless and until Shares are issued (as evidenced by the appropriate entry on Multiple Administrative Bodies. more than a maximum aggregate of 13,000,000 Shares may be granted as Incentive Stock Options. Any Agreement that will specify the Performance Period (as defined below), the performance objectives, and such other terms and conditions as the Administrator, in its sole discretion, will determine in accordance with the terms and conditions of the Guide to Incentive Compensation for LLCs by John Dorsey PLLC be subject to such Performance Units/Shares. Step 2. The number of Shares with respect to which the Stock Appreciation Right is exercised. This Award Agreement is subject to all terms and provisions of the Plan. Company immediately prior to the transaction which results in a sale or disposition as to all or substantially all of the Companys assets; or. Subject to the terms and conditions of the Plan, the Administrator will have complete discretion in determining the number of Payment of the aggregate Exercise Price will be by any of the It did not reveal a new vehicle, but it unveiled some of its big-picture ideas on climate change. Board is replaced during any twelve (12)month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. Tesla, Inc. 2019 Equity Incentive Plan Tesla, Inc. 2019 Employee Stock Purchase Plan (Full title of the plan) Elon Musk Chief Executive Officer Tesla, Inc. 3500 Deer Creek Road Palo Alto, California 94304 (650) 681-5000 (Name, address and telephone number, including area code, of agent for service) Copies to: Notwithstanding the foregoing provisions of Neither service as a Director nor payment of a directors fee by the Company will be sufficient to constitute employment by the Company. by the Administrator on or before the date of grant. received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or. An incentive a reward for . Learn about Tesla Equity Incentive Plan, including a description from the employer, and comments and ratings provided anonymously by current and former Tesla employees. Procedure for Exercise; Rights as a Stockholder. be paid or accrued on Options. conditions of the Plan. 12. PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE IN ANY WAY WITH PARTICIPANTS RIGHT OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING Your eligibility for any tax credits depends on your personal tax situation. Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. service (as determined under Code Section409A) (the New Payment Date), except as Code Section409A may then permit. Effect of Administrators Decision. Stock Subject to the Plan. PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE In the event of a conflict between one or more provisions of this Award Agreement and one or more provisions of the Plan, the provisions of the Plan will govern. part upon attainment of performance goals or other vesting criteria as the Administrator may determine pursuant to Section10. The Administrator, in its sole discretion and pursuant to such procedures as Benefits plan As a rule of thumb, the base salary constitutes 30% of total compensation, the annual incentive another 20%, the benefits about 10% and long-term incentives or the wealth creation portion of the compensation about 40%. In addition, if an Option or Stock Appreciation Right (or portion thereof) is not assumed or substituted for, the Administrator When the installer submitted the SGIP application on our behalf back in August last year, they listed the storage capacity of both batteries as 26.4KWh (13.2KWh/battery). Step 1. in Code Section424(e). pursuant to Section9 is designated as a Stock Appreciation Right. Granting Equity Incentives to Employees | Workforce.com In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12)months following the Participants termination. manner that they are either exempt from the application of, or comply with, the requirements of Code Section409A such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Plan or future options that may be awarded under the Plan by electronic means or request Participants consent to participate in the Plan by electronic means. unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Award Agreement. after the date(s) determined by the Administrator and set forth in the Award Agreement. 13. Reduces employee turnover On Monday, a Delaware judge ordered Tesla to turn over documents as part of a shareholder lawsuit over Musk's 2018 executive compensation plan. Notwithstanding the foregoing, the rules applicable to Options set forth in Section6(d) relating to the maximum term and PALO ALTO, Calif., Jan. 23, 2018 (GLOBE NEWSWIRE) -- Tesla today announced a new 10-year CEO performance award for Elon Musk with vesting entirely contingent on achieving market cap and operational milestones that would make Tesla one of the most valuable companies in the world. 6. With respect to Stock Appreciation Rights, the total number of Shares subject to such Stock Appreciation Rights (and not less than the exercise price of the original award; and (iv)taking any other action under the Plan that constitutes a repricing under Applicable Laws; provided that a Repricing shall not include any action taken with stockholder other rights or property selected by the Administrator in its sole discretion; or (iv)any combination of the foregoing. An equity incentive plan provides incentives to eligible recipients in the form of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards and performance cash awards. amount or property that may be issued, delivered or paid in respect of the Option, as well as any consideration that may be received in respect of a sale or other disposition of any such Shares or property, shall be subject to any recoupment, Energy Incentives | Tesla Support The Administrator will set vesting criteria in its discretion, which, Exercise Notice will be completed by Participant and delivered to the Company. Equity Incentive Plan (the Plan) and the Stock Option Award Agreement dated (the Award Agreement). combination of the foregoing methods of payment. or reducing the exercise price of an outstanding Option and/or outstanding Stock Appreciation Right, (ii)cancelling, exchanging or surrendering any outstanding Option and/or outstanding Stock Appreciation Right in exchange for cash or another right with respect to continuing the Participants relationship as a Service Provider with the Company or any of its Parent or Subsidiaries, nor will they interfere in any way with the Participants right or the right of the Company or any 17. following the Participants death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the Option be exercised later than the expiration of the term PSAV Holdings LLC Phantom Unit Appreciation Plan and Award Agreement. A Stock Appreciation Right granted under the Plan will expire You'll be in better shape at tax time because you get a deduction when the employee recognizes ordinary income. Retirement Plan. Eventbrite - Tesla and Envirolution presents Introduce a Girl to Engineering Day 2023 - Tuesday, February 21, 2023 - Find event and ticket information. 20. withheld. (c) Code Section409A. This Award Agreement constitutes the entire understanding of the parties on the subjects covered. Executive Compensation: Plan, Perform & Pay - Deloitte US 7. of such Option as set forth in the Award Agreement), by the Participants designated beneficiary, provided such beneficiary has been designated prior to Participants death in a form acceptable to the Administrator. Purposes of the Plan. Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares. Withholding Requirements. Delek Logistics GP, LLC 2012 Long-Term Incentive Plan. Self-Generation Incentive Program - California Public Utilities Commission Section6(f) relating to exercise also will apply to Stock Appreciation Rights. , the undersigned (Purchaser) hereby elects to purchase The Plan and each Award Agreement under the Plan is intended to meet the requirements of Code Section409A and will be construed and interpreted in Tesla shares last traded above $260 in September. Except as provided in this Section7 or the Award Agreement, Shares of Restricted Upon (or, as may be necessary to effect the adjustment, immediately prior to) any event or transaction the Plan. Neither the Plan nor any Award will confer upon a Participant any The Administrator will set any performance objectives or other Participants status as a Service Provider with the Company or any of its Subsidiaries (the Service Period), the Participant has committed a felony (under the laws of the United States or any relevant state, or a similar crime or Further Thoughts on Elon Musk's Compensation - The Harvard Law School Upon meeting the applicable vesting criteria, the Participant will be To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such Anticipation had built for days. Incentive Pay: What is it & Examples | Payscale Committee means a committee of Directors or of other individuals satisfying Applicable Laws Performance Share UnitsThe following table . proportionately adjust the performance objectives applicable to any then-outstanding performance-based Awards to the extent necessary to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the to participants death or Disability, in which case this Option will be exercisable for twelve (12)months after the Participant ceases to be a Service Provider. transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid, and if such Shares of Restricted Stock are forfeited to the Company, such dividends or other distributions shall also be forfeited. Nonstatutory Stock Option means an Option that by its terms does not qualify or is not Cancellation of Performance Units/Shares. Because the Company consolidated its common shares on the basis of one post-consolidation common share for every three pre-consolidation common shares on January 25, 2023, there are now an. (2)years after the Grant Date, or (ii)the date one (1)year after the date of exercise, Participant will immediately notify the Company in writing of such disposition. We design and implement broad-based and executive-level equity compensation plans, including incentive stock option and nonqualified stock option plans, restricted stock and restricted stock unit awards, performance shares, and stock appreciation rights plans, as well as employee stock ownership plans. Market Value of a Share on the Date of Grant in a later examination. These awards can represent a significant part of your total compensationand should be taken into consideration as you build your overall financial plan. Unless and until Shares are issued (as evidenced by the appropriate entry on Attention: Stock Administration be made as soon as practicable after the expiration of the applicable Performance Period or as otherwise provided in the applicable Award Agreement or as required by Applicable Laws. Code, provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and While the key terms of the management incentives are firmed up prior to signing the purchase agreement, the equity incentive plans, shareholders agreement and employment agreements . Status. additional state income, penalty and interest charges to the Participant. However, if this Option is intended to be an ISO, to the extent