Tesla fights to avoid the steep cost of scrapping Elon Musk’s pay package

Sky Moore, Tax Partner, spoke to the Financial Times about Tesla's fight to restore Elon Musk's prior compensation package, the failure of which would result in significant accounting and tax charges for the company and Musk. 

Excerpt:

“It is very simple. If you grant options that are ‘in the money’, which they clearly are now, all kinds of bad things happen,” Schuyler Moore, a tax partner at Los Angeles law firm Greenberg Glusker, told the Financial Times. “That is why they are trying so hard to ratify the original deal. If they re-award it now, there will be hell to pay on taxes.”

Resources

• Financial Times