Key Takeaways
- Elon Musk could step down as Tesla CEO if his $1 trillion pay package isn’t approved
- Board Chair Robyn Denholm calls Musk’s leadership “critical” to Tesla’s success
- The package includes 12 stock option tranches tied to $8.5 trillion market cap targets
- Musk says he needs voting control to protect Tesla from “corporate terrorists” ISS and Glass Lewis
Tesla faces a potential leadership crisis as Elon Musk could step down as CEO if shareholders don’t approve his proposed $1 trillion compensation package. Board Chair Robyn Denholm warned investors that Musk’s leadership is essential for the company’s future success.
Ambitious Performance Targets
The massive pay package, set for vote at the November 6 annual meeting, would grant Musk 12 tranches of stock options tied to extraordinary targets. These include achieving a market capitalization of $8.5 trillion and reaching significant milestones in autonomous driving and robotics development.
Musk’s Defense of the Package
Musk defended the unprecedented compensation, stating he needs sufficient voting control to protect Tesla from what he called “corporate terrorists” – shareholder advisory firms ISS and Glass Lewis.
“It’s not like I’m going to go spend the money,” Musk told investors. “There needs to be enough voting control to give me a strong influence – but not so much that I can’t be fired if I go insane.”
The Tesla CEO expressed strong concerns about the influence of proxy advisory firms, claiming they’ve made “many terrible recommendations” that could have been “extremely destructive to the future of the company.”
Board Under Scrutiny
Meanwhile, Tesla’s board faces ongoing criticism from governance experts and advocacy groups who question its independence and oversight of Musk’s influence. The board has been repeatedly accused of not acting in shareholders’ best interests.
Musk currently serves as CEO of both Tesla and SpaceX, while also being the primary owner of AI company xAI, which operates social media platform X.
