Tesla Chair Warns Elon Musk May Leave If $1 Trillion Pay Plan Rejected

Warning on Elon Musk's Compensation

• ⚠️ Tesla's Chair Robyn Denholm warned that Elon Musk could leave Tesla as CEO if his proposed $1 trillion pay package is not approved.
• 🗓️ This warning comes ahead of the automaker's annual meeting in early November.

Rationale for the Pay Package

• 🎯 Denholm stated the proposed plan is performance-based, aiming to motivate Musk to lead Tesla for at least another 7.5 years.
• 🚀 Musk's leadership is deemed critical to Tesla's success, especially as the company aims to be a global leader in AI and autonomous driving.

Package Details and Criticisms

• 📈 The proposed package includes 12 tranches of stock options tied to ambitious targets, such as a market capitalization of $8.5 trillion and milestones in autonomous driving and robotics.
• 🤝 Denholm's letter frames the package as necessary to align Musk's incentives with shareholder value and long-term growth.
• ⚖️ Tesla's board has faced criticism for not acting in shareholders' best interests and for its close relationship with Musk.
• 🚫 A Delaware court previously struck down Musk's 2018 pay deal, finding it was improperly awarded and negotiated by directors who were not fully independent.