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Elon Musk to quit Tesla CEO role? All on Chairperson's warning to shareholders
Elon Musk may resign as Tesla's CEO if shareholders reject his $1 trillion compensation plan during the annual meeting on Nov 6, said board chair Robyn Denholm.
Elon Musk has may resign as CEO of Tesla if shareholders reject his $1 trillion pay package at the company's annual meeting on November 6, stated Robyn Denholm, chair of the board.
According to Denholm's letter to investors, the performance-based plan was created to ensure Musk continues to lead Tesla for “at least another seven-and-a-half years,” Reuters reported.
Robyn Denholm highlights Musk's time, talent, and vision
She stated that Musk's leadership was “critical” to the firm's future and cautioned that Tesla would lose his “time, talent, and vision” if he is not offered a package that will persuade him to stay, as reported by Reuters. As Tesla seeks to advance its autonomous driving and artificial intelligence technologies, she asserted his job is crucial.
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Elon Musk's 1 trillion pay package
Musk would receive 12 blocks of share options under the proposed deal if Tesla meets significant goals, such as reaching a market valuation of $8.5 trillion and making advancements in robotics and self-driving systems, as per the report.
According to Reuters, Denholm stated that the plan will link Musk's benefits to sustained expansion and shareholder profitability. Additionally, she requested that investors re-elect three seasoned directors who have collaborated closely with Musk.
Some shareholders and governance experts have criticized Tesla's board, claiming it has not demonstrated enough independence from Musk. A Delaware court canceled his 2018 compensation arrangement earlier this year, citing improper handling by directors who lacked full independence.
Musk vs proxy advisers
Denholm's letter comes after independent proxy counselors Glass Lewis and ISS contended that the most recent compensation package should not be approved by shareholders because it was disproportionate, detrimental to shareholders, and not decided by an impartial board.
Following this, Musk attacked the proxy advisers on Tesla's most recent earnings call.
“I just don't feel comfortable building a robot army here and then being ousted because of some asinine recommendations from ISS and Glass Lewis, who have no frigging clue. I mean, those guys are corporate terrorists,” he stated.
