Tesla Chair Robyn Denholm warned that Elon Musk Tesla pay plan rejection could lead the billionaire CEO to leave the company. In a letter to shareholders, she said Musk’s proposed $1 trillion performance-based package is vital to keeping him at Tesla. The warning comes ahead of the company’s annual meeting on November 6.
Denholm explained that the pay plan aims to retain and motivate Musk to lead Tesla for another seven years. She said his leadership is “critical” to Tesla’s global success. Without a package that rewards his efforts, Denholm cautioned, the company might lose his “time, talent, and vision.”
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The proposed deal would grant Musk 12 sets of stock options based on tough goals. These include reaching an $8.5 trillion market value and advancing Tesla’s work in artificial intelligence, robotics, and autonomous driving. Denholm said the package aligns Musk’s incentives with long-term shareholder value and future growth.
Tesla’s board has faced heavy criticism from governance experts and advocacy groups. They argue the directors are too close to Musk and lack independence. Earlier this year, a Delaware court struck down his 2018 pay deal, ruling it was unfairly negotiated by a non-independent board.
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As the vote nears, Tesla faces intense pressure from investors and regulators. Supporters say the Elon Musk Tesla pay plan ensures innovation and stability. Critics, however, argue it gives Musk excessive control. The outcome could reshape the company’s leadership and its future direction.