Latest news with #AdityaSoni
RNZ News
6 days ago
- Automotive
- RNZ News
Tesla approves share award worth $29 billion to CEO Elon Musk
By Aditya Soni , Reuters The new pay deal is at keeping the Musk at the helm of Tesla as it pivots from its core auto business to robotaxis and humanoid robots. Photo: AFP / Pool / Chip Somodevilla Tesla has granted CEO Elon Musk shares worth about US$29 billion in a new pay deal aimed at keeping the billionaire entrepreneur at the helm during a crucial pivot from its struggling core auto business to robotaxis and humanoid robots. The company described the "interim award" of the 96 million new shares as a first step, "good faith" payment to honor Musk's more than US$50b pay package from 2018 that was struck down by a Delaware court last year. Musk can claim the new award if he remains in a top executive role for another two years and a court does not reinstate the 2018 package currently on appeal. He has to hold the shares for five years and can buy them for US$23.34 per share, the same as the exercise price of the 2018 award. Tesla will also put to vote a longer-term CEO compensation plan at its annual investor meeting on 6 November. The move is meant to keep Musk, the public face of Tesla and architect of its robotaxi strategy, focused on the electric-vehicle maker as it navigates a shift to cybercabs and robotics from its mainstay auto business. It also seems to quell any speculation that the board's patience with Musk could be wearing thin because of the recent tumultuous months, including the CEO's foray into politics. The move to give Musk greater control of the company suggests that directors still see him as best-suited to tackle Tesla's growing list of challenges in the years ahead. Sales have been falling at the company due to its aging vehicle line-up, tough competition and Musk's right-wing political stances that have tarnished its brand. S&P Global Mobility data shared exclusively with Reuters showed on Monday that Tesla's brand loyalty had plunged since Musk endorsed U.S. President Donald Trump last summer. Musk's involvement in politics and his wider business empire, including AI startup xAI, have also sparked concerns about his devotion to Tesla, the main source of his wealth. Musk has threatened to leave unless he gets more control over Tesla. The new stock award will take his Tesla stake, already the largest, to more than 15% from the 12.7% currently, according to Reuters calculations based on data compiled by LSEG. Before Monday's grant, Musk had no active compensation plan and Tesla said he had not received meaningful pay since 2017. With the legal fight over his 2018 package expected to continue, the board said it moved to retain Musk's "extraordinary talent." "While we recognize Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging... we are confident this award will incentivize Elon to remain at Tesla," said a special committee Tesla formed this year to consider Musk's compensation. It consists of chair Robyn Denholm and independent director Kathleen Wilson-Thompson. The company said it would not record compensation expense for the award as it does not currently expect the performance condition to be "probable of being met." It will re-evaluate and recognize the expense if it determines the award is likely to be met, including after the two-year vesting period. The new shares will also be forfeited or offset if the Delaware courts fully reinstate the 2018 stock award, ensuring there is no "double dip," the special committee said. Investors and analysts welcomed the news, with Tesla shares rising nearly 2% in early trading. The stock has lost a quarter of its value this year, as of last close. "Under normal circumstances, a compensation package in the billions would raise some eyebrows. (But) clearly investors have benefited from Musk's stewardship of Tesla," said Camelthorn Investments adviser Shawn Campbell, who owns Tesla shares. "This stock grant will bind Musk to Tesla for the next two years." The Delaware ruling on Musk's 2018 pay package, the largest in Corporate America, had cited flaws in the board's approval process and unfairness to investors. Musk kicked off an appeal against the order in March, claiming a lower court judge made multiple legal errors in rescinding the record compensation. He has argued that the package resulted in spectacular growth for Tesla and yet was determined by the lower Court of Chancery to be unfair to shareholders, who voted twice to approve the plan. Tesla shares have risen nearly 2000 percent over the past decade, far outperforming the around 200% rise in the benchmark S&P 500 index in the same period. "This is simply a repackaged version of what was done years ago and was ruled improper by a judge. It renders the Delaware court decision effectively meaningless," said Charles Elson, founding director of the Weinberg Center for Corporate Governance at the University of Delaware. "You don't have to incentivise him to stay. If he leaves, he throws away 13% of the company, which is still a huge part of his net worth, said Elson, who had filed amicus briefs supporting the court's decision to void Musk's 2018 award. - Reuters
Zawya
6 days ago
- Automotive
- Zawya
Tesla approves 96mln share award to CEO Elon Musk
Tesla disclosed in a filing on Monday it has awarded CEO Elon Musk 96 million shares of the company, worth about $29 billion. Musk must pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, it said in the filing. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over $50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details. Tesla is at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. (Reporting by Aditya Soni in Bengaluru; Editing by Anil D'Silva)
Time of India
30-07-2025
- Business
- Time of India
Palo Alto to scoop up CyberArk for $25 billion to tackle AI-era threats
By Aditya Soni and Kritika Lamba Palo Alto Networks will buy Israeli peer CyberArk Software for about $25 billion, in its biggest deal yet, as CEO Nikesh Arora seeks to create a comprehensive cybersecurity provider to tap into rising AI-driven demand. Wednesday's cash-and-stock deal, one of the largest tech takeovers this year, underscores a consolidation in the cybersecurity industry as customers streamline vendors after facing breaches while relying on a patchwork of firms. It follows Alphabet's $32 billion acquisition of Israeli startup Wiz in March, and will broaden Palo Alto's cybersecurity offerings by adding identity security tools , bolstering its appeal to large enterprise customers. A surge in cyberattacks, including data breaches and ransomware, has driven demand for more comprehensive defenses. That has fueled interest in firms including CyberArk . Earlier this month, Microsoft said hackers broke into its on-premises SharePoint servers, hitting more than 100 groups including U.S. agencies and fanning fears about identity protection. "The rise of AI and the explosion of machine identities have made it clear that the future of security must be built on the vision that every identity requires the right level of privilege controls," Arora said in a statement. CyberArk specializes in privileged access management, technology that helps organizations safeguard sensitive systems by limiting and monitoring access to critical accounts. Its customers include Carnival Corp, Panasonic and Aflac. CyberArk investors will receive $45.00 in cash and 2.2005 shares of Palo Alto for each share they own, the companies said. That values CyberArk at $495 a share, representing a 29.2% premium to Monday's close, the last session before reports of deal talks, according to Reuters calculations. Palo Alto shares fell 8%, while CyberArk slipped 2.2% to around $424, after jumping 13.5% on Tuesday on reports about the deal. CyberArk stock is up around 30% so far this year. RISING AI THREATS Analysts said Palo Alto could accelerate its AI security push by tapping its large salesforce to drive adoption of CyberArk's tools, seen as vital for securing AI systems. "It helps broaden the portfolio since Palo Alto does not have any offering in the 'identity' space," said Imtiaz Koujalgi, Roth Capital Partners' managing director of software research. "Palo Alto also has been seeing growth slow in its next-generation security portfolio, so adding CYBR will be helpful in driving incremental traction." Global cybersecurity spending is set to grow 12.2% in 2025 as rising AI-driven threats push companies to adopt stronger defenses, according to International Data Corp. The buyout is expected to close in fiscal 2026 and will immediately add to Palo Alto's revenue growth and gross margin.
NDTV
09-07-2025
- Automotive
- NDTV
BYD Seal Owner Seeks Battery Replacement- Costs More Than Your Hyundai Creta!
A BYD Seal owner has recently gotten in a situation where he needs to get the battery replaced for his two-month-old sedan. Aditya Soni, the owner of the electric sedan, bought the vehicle from a dealership in Noida. There, he was convinced to go with the insurance provided by the dealership. To which he requested maximum protection with all the add-ons, with a payment of Rs 1.2 lakh for insurance. However, things didn't turn out as he expected. Aditya also asked to purchase the battery protection cover and was assured by the insurance agent, as well as the dealership, that "Zero Dep" covers everything. He was also informed that the insurance policy did not have any separate add-on for the battery. This is what became the source of the problem for him. Also Read: Bentley EXP 15 Concept Gives Sneak Peek At Brand's Production EV A few months after purchasing the car, Aditya took it back to his hometown, where it was damaged in a flood. When he contacted BYD India about this problem, he was informed that the warranty does not cover damages caused by water. When he reached out to the insurance company, the situation worsened. They informed him that his policy does not include battery protection. To get his battery replaced, he has been given a bill of Rs 18.35 lakh. 18.35 Lakhs Bill being asked to pay for @BYDCompany salesman's mistake. 2 Months ago when i bought the car, he lied about the insurance policy covering 100% battery and i am stuck b/w @ICICILombard and @landmarkinsure (BYD's Insurance Broker in Noida) in just 2 months .... — Aditya Soni (@AdityaSoniMD) September 27, 2024 The BYD Seal owner has shared his ordeal on social media. He has filed a claim under flood damage, but has not received an explanation from the insurer or the brand. The customer has provided an audio recording of a call with the insurance agent, confirming that battery protection is included in the policy. BYD Seal is one of the premium electric sedans in the Indian market. The car comes at a starting price of Rs 41 lakh (ex-showroom) and goes up to Rs 53.15 lakh (ex-showroom). The variant with the biggest battery pack comes with an 82.56 kWh unit, which offers a range of 650 km on a single charge.
Time of India
28-05-2025
- Business
- Time of India
Salesforce to buy Informatica for $8 billion to bolster AI data tools
By Aditya Soni Salesforce said on Tuesday it would buy Informatica for about $8 billion, betting on the data management platform to sharpen its competitive edge in the booming artificial intelligence market. The cloud-software giant is returning to big-ticket M&A after years on the sidelines, driven by scrutiny from activist investors pressing for better profitability. It had last year shelved deal talks with Informatica after the companies failed to agree on deal terms. Buying Informatica, in its biggest deal since its nearly $28 billion acquisition of Slack Technologies in 2021, would help Salesforce expand its data management tools as it doubles down on AI-powered products. The deal would also allow Salesforce to tighten control over how business data is managed and used, an essential step as it races to embed generative AI deeper into its products. "Salesforce and Informatica will create the most complete, agent-ready data platform in the industry," said Salesforce CEO Marc Benioff , adding the deal will strengthen its position in the $150 billion-plus data enterprise market. The company has been offering AI agents - programs that can handle routine work without human supervision - to businesses for recruiting and customer service. It has closed more than 1,000 paid deals for "Agentforce", its platform for creating AI-powered virtual representatives. Salesforce is paying $25 for each share of Informatica, a premium of about 30% to Informatica's closing price on May 22, the day before news of renewed talks emerged. Informatica shares were 5.8% higher in premarket trading at $23.86, while Salesforce was up 1.2%. Salesforce expects to close the deal in early next fiscal year starting February through a mix of cash and new debt. The deal is expected to boost its operating margin from the second year after closing. Scotiabank analysts said the move could help Salesforce catch-up with software rivals as "data management software is now most often sold as part of mega-vendor tool kits". The business software company has been a prolific dealmaker, buying data analytics firm Tableau Software in 2019 for $15.7 billion in stock, and Slack in 2021 in its biggest deal. Those deals drew scrutiny in 2023 when activist investors, including ValueAct Capital and Elliott Management, pressed for changes to improve profitability.
