Tesla will start giving its employees cash grants as their default incentive to stick with the company, rather than the equity awards it has traditionally handed out, according to internal documents viewed by The Information.
The electric car maker’s employees will still be able to receive stock awards instead of cash grants if they prefer to, according to the documents, but the default will be to receive cash. Tesla stock has appreciated sharply over the past couple of years—it traded near $30 at the beginning of 2020, on a split-adjusted basis, and it closed at $268.21 on Thursday.
The awards are offered to employees when they are hired, change jobs or are promoted, and as part of their annual performance review. Employees based in New York, Ohio and Louisiana are excluded from the change due to local laws.