This Indian CEO Has Bagged A ‘Staggering’ Elon Musk-Like Pay Package
This Indian CEO Has Bagged A 'Staggering' Elon Musk-Like Pay Package
Shareholders of QuantumScape Corp., the solid-kingdom battery startup that went public thru a blank-test deal remaining yr, authorized a multibillion-greenback pay package deal for its pinnacle govt that one proxy adviser called “staggering” in size.
Under the settlement, Chief Executive Officer Jagdeep Singh should acquire inventory alternatives doubtlessly worth as tons as $2.three billion, if the business enterprise meets diverse milestones, consistent with estimates via way of means of proxy advisory company Glass Lewis. On a webcast of QuantumScape’s annual shareholder assembly Wednesday, the package deal surpassed in a initial vote, and the business enterprise stated a very last tally might be to be had later.
“The disclosed greenback fee fee of the provide is staggering,” Glass Lewis, which had advised stockholders to reject the package deal, wrote in a latest report. Institutional Shareholder Services, every other advisory company, additionally antagonistic it.
Large pay applications have become more and more more not unusualplace amongst fast-developing startups, especially after the fulfillment of Tesla Inc. unleashed a wave of coins withinside the electric powered car market. Such pacts echo the repayment settlement that helped make Tesla CEO Elon Musk the world’s richest person, stated Dayna Harris, a companion at govt repayment company Farient Advisors. At least 15 company leaders acquired awards worth $one hundred million or extra remaining yr, a threefold growth from whilst Musk acquired his in 2018.
“We strongly agree with in placing challenging, hard-to-acquire dreams, after which focusing efforts to lead them to happen,” QuantumScape had stated in a letter to shareholders protecting the package deal. “This is why we primarily based totally this new award on stretch dreams and why we gave our key executives the capacity to proportion withinside the upside in a manner this is commensurate with the issue of accomplishing them.”
QuantumScape, subsidized via way of means of Volkswagen AG and Bill Gates’s mission fund, rocketed to a valuation of almost $50 billion past due remaining yr at the promise of its next-era technology, that may dramatically velocity EV adoption via way of means of imparting automakers with a safer, inexpensive opportunity to lithium-ion batteries. It has come below stress this yr from short-dealers thinking its prospects, with stocks plunging 72% thru Tuesday’s close.
The stocks tumbled every other 4.three% as of 12:32 p.m. Wednesday in New York.
