On the Dash:
- Tesla’s CEO may step down if shareholders reject his proposed $1 trillion pay plan.
- The package ties 12 stock-option tranches to milestones in market value, autonomous tech, and robotics.
- Shareholders will vote on the pay plan and re-election of key directors at the Nov. 6 annual meeting.
Tesla CEO Elon Musk could leave the company if shareholders reject his proposed $1 trillion performance-based pay package, Chair Robyn Denholm warned in a letter on Monday. The decision comes ahead of Tesla’s annual meeting on Nov. 6, amid ongoing scrutiny over board independence and executive oversight.
Denholm described the package as essential to retaining Musk for at least another seven-and-a-half years, emphasizing that his leadership is “critical” as Tesla pursues ambitions in artificial intelligence, autonomous driving, and robotics. Without a properly structured plan, she said, the company risks losing Musk’s “time, talent, and vision.”
The proposed compensation would grant Musk 12 tranches of stock options tied to ambitious targets, including reaching a market capitalization of $8.5 trillion and achieving key milestones in autonomous driving and robotics. Denholm framed the plan as a way to align Musk’s incentives with long-term shareholder value.
Tesla’s board has faced criticism over its close ties to Musk. A Delaware court earlier this year struck down Musk’s 2018 pay deal, ruling it was improperly awarded by directors who were not fully independent. In her letter, Denholm urged investors to re-elect three long-serving directors who have worked closely with Musk.
The upcoming shareholder vote will determine whether Musk remains at the helm of Tesla through 2032. Approval could affect Tesla’s leadership and governance, while rejection could trigger a leadership shake-up with potential implications for Tesla’s market performance.
