Musk Could Leave Tesla if $1 Trillion Pay Plan Is Rejected, Chair Warns

Elon Musk could leave Tesla as CEO if his proposed $1 trillion pay package is not approved, Chairwoman Robyn Denholm warned in a recent letter to shareholders, Akash Sriram reported for Reuters.

The proposed package would grant Musk 12 tranches of stock options tied to ambitious targets. (Illustration: DonkeyHotey Flickr)

The appeal comes ahead of the November 6 annual meeting, with Tesla’s board having faced repeated criticism for not acting in shareholders’ best interests.

Governance experts and advocacy groups have questioned its independence and oversight of Musk’s influence.

The proposed performance-based plan was designed to retain and motivate Musk to continue leading Tesla for at least another seven and a half years, Denholm said in the letter.

Musk’s leadership is “critical” to Tesla’s success, she said, warning that without a plan that properly incentivizes him, the company could lose his “time, talent, and vision.”

His role is seen as vital as Tesla seeks to become a global leader in artificial intelligence and autonomous technology.

The proposed package would grant Musk 12 tranches of stock options tied to ambitious targets, including a market capitalization of $8.5 trillion and milestones in autonomous driving and robotics.

Denholm’s letter portrays the package as necessary to align Musk’s incentives with shareholder value and long-term growth, while also urging investors to re-elect three long-serving directors who have worked closely with him.