Tesla’s President of Global Sales and Service Jon McNeill stands to take home a cool $700,000 ‘bonus’ upon the successful achievement of his third and fourth quarter 2017 targets. The information was revealed on Wednesday in a U.S. Securities and Exchange Commission Form 8-K filing by Tesla, Inc., dated August 17, 2017.
In the SEC filing, the Palo Alto-based electric car maker disclosed financial agreements made by the company, including the termination of a past SolarCity credit agreement and a quarterly target-driven compensation plan with McNeill.
“On August 18, 2017, Tesla entered into an incentive compensation plan (the ‘ Compensation Plan ‘) with Jon McNeill, Tesla’s President, Global Sales and Service, pursuant to which Mr. McNeill will be eligible to receive variable compensation upon the achievement of certain target levels of (i) vehicle deliveries during the third and fourth quarters of 2017, (ii) operational and financial metrics relating to vehicle service performance and costs during 2017, and (iii) customer satisfaction scores during 2017, with an aggregate target payout amount of $700,000.” read the Form 8-K SEC filing.
Tesla notes that the payout will be made in cash, stock options or restricted stock units, and determined separately by specific target levels being reached.
With all eyes on Tesla’s upcoming quarterly earnings and delivery reports, and Wall Street bets riding high on the company’s latest mass market Model 3 – a vehicle seen as the pivotal “game changer” that will one day take the cash-burning company into profitability – the new incentive compensation plan could certainly help the company boost its important year-end numbers.
Arguably, just as important as the company’s sales and delivery numbers is Tesla’s standing with its loyal customer base. As noted in the SEC filing, part of McNeill’s $700,000 payout will be contingent upon the successful achievement of targets set forth for customer satisfaction and service performance.
One might recall that McNeill is active within the Tesla forum and online community. In January of this year, McNeill appeased the legions of heavy-footed Tesla owners that called foul play after they discovered a permanent performance limiting algorithm in their Model S and Model X. McNeill took to the forums and restored order after announcing that Tesla would be removing the special algorithm designed to protect a vehicle’s battery from damage, and restore ‘Max Power’ to affected vehicles.
In June, McNeill hopped into an active Reddit discussion after a Model X owner with a history of issues related to their Falcon Winged-SUV made a public outcry for help. “I’m head of sales and service at Tesla and want to help with your situation. Please send me your VIN# — you can direct message me on Twitter (@jonmcneill), or on the Tesla Motors Club forum at JonMc.” wrote McNeill.
McNeill’s soft skills and unrelenting devotion to the company and its customers is one of the reasons why his reputation once earned him the title of “Most Admired CEO” prior to joining Tesla.