Tesla Alters Employee Compensation Strategy; What To Expect?

 

The American multinational car and clean energy business Tesla has changed its approach to employee remuneration. Salaried staff members have received word from the corporation that merit-based equity rewards are not going to be given out this year.

Even with the lack of merit-based equity grants, a Bloomberg story claims that Tesla employees did receive small cost-of-living raises and modifications to their base pay.

The pay change coincides with Tesla CEO Elon Musk’s worries, expressed at the New York Times DealBook Summit, about keeping skilled workers in a competitive labor market.

Some paid staff members of Tesla have been notified by company leadership that merit-based stock rewards will not be given out this year. But Tesla didn’t explain why the modification was made.

In addition to their current ownership, Tesla employees receive merit-based stock grants and compensation increases each year. But this year, merit-based scholarships were denied to even the top performers.

With 140,000 workers worldwide, Tesla gave no explanation for the modification. Elon Musk, the CEO of Tesla and the richest person in the world, has never shied away from expressing his concerns about high-interest rates in an era of inflation.

Whether the modification is a result of a wider change in Tesla’s compensation strategy is yet unknown.