Tesla Board Chair Defends Musk’s $1 Trillion Pay Package Against “Misguided” Critics
Tesla board chairperson Robyn Denholm has strongly defended Elon Musk’s controversial $1 trillion compensation package, calling proxy advisory firms’ criticism “misguided recommendations” in an open letter to shareholders.
Key Takeaways
- Tesla’s board chair rejects ISS and Glass Lewis criticism of Musk’s pay package
- Denholm urges shareholders to ignore proxy advisors’ voting recommendations
- The $1 trillion compensation is tied to performance targets and “Sustainable Abundance” vision
- Annual meeting scheduled for November 8 will address the pay package vote
Board’s Strong Defense
In the letter shared by Tesla on X, Denholm argued that proxy advisory firms ISS and Glass Lewis are “fundamentally unable to evaluate companies, like Tesla, that chart their own course and challenge the status quo.”
The board chair explicitly urged shareholders to disregard the firms’ voting advice for the upcoming Annual Meeting on November 8.
Performance-Based Compensation
Denholm clarified that Musk’s massive compensation package represents a “performance incentive award” rather than guaranteed pay. The award is contingent on delivering products that support Musk’s vision for “Sustainable Abundance” while addressing shareholder concerns about retention and long-term succession planning.
The board maintains this structure “ultimately creates extraordinary shareholder value” by aligning Musk’s incentives with long-term company performance.
Here’s the full letter shared by Tesla board chairman
