Updated December 20th, 2023 at 12:59 IST
Tesla skips employees’ annual stock bonus: Report
This move follows the union of auto workers' successful negotiation of contracts with major Detroit-based automakers.
Tesla has opted not to provide its employees with annual merit-based stock awards, according to a media report. Tesla had not furnished a response to inquiries from Reuters.
This development emerges subsequent to an announcement by the United Auto Workers union in November, with plans for an unprecedented initiative to publicly organise the entire nonunionised automotive sector in the US, encompassing Tesla. This move follows the union's successful negotiation of contracts with major Detroit-based automakers.
Sources cited in the report indicated that Tesla's management communicated this decision directly to its salaried workforce. Multiple employees across various departments expressed their belief that this policy change was implemented company-wide. Nonetheless, employees did receive incremental adjustments for cost-of-living and base salary increments.
Furthermore, the report highlighted that Tesla did extend stock "refreshers" to certain employees who completed their four-year vesting cycles. This measure was purportedly undertaken to maintain competitive total compensation packages for those individuals.
(With Reuters inputs)
Published December 20th, 2023 at 12:42 IST