(RTTNews) – Tesla (TSLA) Board Chair Robyn Denholm cautioned shareholders that CEO Elon Musk could step away from the company if his proposed $1 trillion performance-based compensation plan is voted down at Tesla’s November 6 annual meeting.
In a letter to investors, Denholm emphasized that Musk’s leadership is “critical” to Tesla’s future and warned that without sufficient incentives, the company risks losing his “time, talent, and vision.” The package includes 12 tranches of stock options tied to milestones such as an $8.5 trillion market capitalization and advancements in autonomous driving and robotics.
Denholm defended the plan as essential to align Musk’s interests with shareholders and to secure his long-term commitment, urging investors to also re-elect three veteran directors who have worked closely with him.
The appeal follows mounting opposition from influential proxy advisers Glass Lewis and Institutional Shareholder Services, both recommending shareholders vote against the deal, citing concerns about board independence and excessive compensation.
Tesla’s board has faced years of scrutiny over its close ties to Musk. A Delaware court previously voided his 2018 pay package, ruling it had been improperly negotiated. The latest proposal, the largest in corporate history, is intended to retain Musk as Tesla pursues growth in AI and autonomous technology.
Monday, TSLA closed at $452.42, up 4.31%, and currently trades after hours at $452.31, down 0.02% on the NasdaqGS.
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