Tesla Motors offer for SolarCity wipes out stock awards given to Elon Musk’s cousins says Bloomberg Technology

Tesla Motors Inc.’s $2.6 billion offer for SolarCity Corp. is wiping out stock awards given to Elon Musk’s cousins says Bloomberg Technology

Lyndon and Peter Rive, who serve as the chief executive and chief technology officer of SolarCity, were granted combined stock options of about $128 million in the San Mateo, California-based solar company in September, placing them among the 15 highest-paid U.S. executives in 2015, according to the Bloomberg Pay Index. The options will be canceled for no consideration, according to a Monday regulatory filing.

The awards are nearly identical to those offered to Musk at Palo Alto, California-based Tesla in 2012. The billionaire is the chairman and largest shareholder of both companies. Under the awards’ terms, the Rives would have had 10 years to earn the options by achieving sets of goals, with half tied to SolarCity’s stock price and half tied to operational results such as increasing customers, and lowering the cost of generating solar wattage. Every time the company achieved a target in both categories, they would earn 1/10th of the options.

For the entire story on Bloomberg Technology