 "Will Elon Musk leave Tesla if trillion dollar pay plan is rejected?")
Tesla Chair Robyn Denholm has warned that Elon Musk could walk away from the company if shareholders vote against his proposed $1 trillion performance-based pay package, calling the plan vital to retaining his leadership, according to a CBT News report.
The warning comes ahead of Tesla’s annual meeting on November 6, where investors will decide on Musk’s future compensation amid renewed scrutiny over the board’s independence and governance practices.
Denholm said the package was designed to keep Musk at Tesla for at least another seven-and-a-half years, arguing that his “time, talent, and vision” are essential as the company pushes deeper into artificial intelligence, autonomous driving, and robotics.
Without a structured incentive plan, she cautioned, Tesla risks losing the focus and innovation that have defined its success.
Musk’s pay plan
According to the report, under the proposal, Musk would receive 12 tranches of stock options tied to ambitious performance goals, including achieving a market capitalisation of $8.5 trillion and reaching milestones in next-generation technologies.
Denholm framed the package as aligning Musk’s rewards with long-term shareholder value.
The plan, however, comes after a Delaware court earlier this year struck down Musk’s 2018 pay deal, ruling that it was improperly approved by a board that lacked full independence.
Tesla’s governance has since come under increased scrutiny, with some investors questioning the close ties between Musk and several directors.
In her letter to shareholders, Denholm also urged support for the re-election of three long-serving board members who have worked closely with Musk, describing them as vital to maintaining Tesla’s momentum.
Impact Shorts
More ShortsThe upcoming vote will determine whether Musk remains at Tesla’s helm through 2032.
A rejection could trigger a leadership shake-up with far-reaching implications for the company’s strategy, market performance, and investor confidence.
With inputs from agencies
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