Tesla’s Board Chair, Robyn Denholm, has cautioned shareholders that CEO Elon Musk could step away from the company if his proposed $1 trillion compensation plan is rejected.
In a letter sent to shareholders on Monday ahead of Tesla’s November 6 annual meeting, Denholm urged investors to back the performance-based pay package — the largest ever proposed for a corporate executive. The vote will determine whether Musk receives stock options tied to ambitious milestones, including an $8.5 trillion market capitalization and progress in self-driving and robotics technology.
Denholm emphasized that Musk’s leadership remains “essential” to Tesla’s continued innovation and growth, arguing that the pay deal is crucial to keeping his “time, talent, and vision” focused on the company. The board maintains that the package would align Musk’s incentives with long-term shareholder value and strengthen Tesla’s position in artificial intelligence and autonomous vehicle development.
The appeal comes as Tesla’s board faces ongoing criticism over corporate governance and its perceived closeness to Musk. Earlier this year, a Delaware court struck down Musk’s 2018 pay plan, ruling that it was improperly awarded and lacked sufficient oversight by independent directors.
Proxy advisory firms Glass Lewis and Institutional Shareholder Services have both recommended that investors vote against the new plan, citing concerns about governance and fairness.
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Despite the controversy, Tesla shares were up 3.1 percent as of 11 a.m. in New York (15:00 GMT), reflecting continued investor confidence in the company’s market potential.
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Source:Africa Publicity
