Billionaire Elon Musk may exit Tesla if shareholders vote against a proposal to raise his compensation package to $1 trillion, warned Tesla Chair Robyn Denholm in a letter to investors ahead of the company’s annual board meeting on November 6, according to a Reuters report.
In her letter, Denholm emphasized that Musk’s leadership is “critical” to Tesla’s success, noting that the electric vehicle giant risks losing his “time, talent, and vision” without a robust incentive structure in place.
Denholm described Musk’s role as “vital” for Tesla’s ambitions to become a global leader in artificial intelligence (AI) and autonomous driving technology. The proposed compensation plan reportedly includes 12 tranches of stock options, tied to bold targets such as achieving a market capitalization of $8.5 trillion, along with major milestones in robotics and self-driving innovation.
The letter also urged shareholders to re-elect three long-serving directors who have worked closely with Musk, arguing that the compensation plan aligns his incentives with Tesla’s long-term growth and shareholder value.
However, the company’s board has faced mounting scrutiny from governance experts and investor advocacy groups, who have questioned both its independence and Musk’s influence over decision-making.
Earlier this year, a Delaware court struck down Musk’s 2018 pay package, ruling that it had been improperly awarded and negotiated by directors lacking independence.
The latest proposal — which could make Musk the first executive in history to command a potential $1 trillion payout — has reignited debate over corporate governance and executive power within one of the world’s most valuable automakers.
Elon Musk May Leave Tesla If $1 Trillion Pay Deal Fails, Warns Chair Robyn Denholm
