Elon Musk could step down as Tesla CEO if shareholders reject his proposed $1 trillion pay package, the company’s Board Chair, Robyn Denholm, warned.
In a letter to shareholders ahead of Tesla’s November 6 annual meeting, Denholm stressed that Musk’s leadership is critical for Tesla’s ambitions in artificial intelligence, autonomous technology, and robotics. The controversial compensation plan, designed to retain Musk for at least 7.5 years, links 12 tranches of stock options to ambitious targets, including an $8.5 trillion market valuation.
Proxy advisory firms Glass Lewis and Institutional Shareholder Services have urged shareholders to vote against the plan, highlighting governance concerns. Despite the controversy, Tesla shares rose 3.1% in Monday trading.
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