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Tesla Chair Robyn Denholm warned in a letter to shareholders on Monday that Elon Musk could step down as CEO if his proposed $1 trillion compensation package is not approved. The warning comes ahead of the company’s annual meeting on November 6, as Tesla’s board continues to face criticism over its independence, oversight of Musk’s influence and whether it is acting in shareholders’ best interests. In the letter, Denholm said the proposed performance-based compensation plan was intended to retain and motivate Musk to lead Tesla for at least another seven and a half years. She emphasised that Musk’s leadership is “critical” to the company’s success and cautioned that, without a plan that adequately incentivises him, Tesla risks losing his “time, talent and vision.” Denholm also mentioned Musk’s vital role as the company works to establish itself as a global leader in artificial intelligence and autonomous technology. The proposed package would grant Musk 12 tranches of stock options tied to ambitious targets, including a market capitalisation of $8.5 trillion and milestones in autonomous driving and robotics. Denholm’s letter presents the compensation package as essential to aligning Musk’s incentives with shareholder value and Tesla’s long-term growth. She also urged investors to re-elect three long-serving board members who have closely collaborated with Musk. Tesla’s board has faced longstanding scrutiny over its close ties to Musk. Earlier this year, a Delaware court voided his 2018 pay deal, ruling that it was improperly awarded and negotiated by directors who were not fully independent. Get Latest News Live on Times Now along with Breaking News and Top Headlines from US News and around the World.
