Saira Imran Tesla Chair Robyn Denholm warned shareholders that Elon Musk will leave Tesla if they do not approve the Elon Musk Tesla Salary Package worth $1 trillion. She wrote this in a letter ahead of the company’s annual meeting on November 6.
According to a report published in Dawn Newspaper, the Tesla board has faced ongoing criticism for not fully protecting shareholders’ interests. Experts and advocacy groups have questioned the board’s independence and Elon Musk’s strong influence.
Denholm said the Tesla Salary Package rewards performance and aims to keep him as CEO for at least seven and a half more years.
She said Musk’s leadership is vital for Tesla’s success. Without proper incentives, the company might lose his focus, vision, and innovation. Since Tesla aims to lead in artificial intelligence and self-driving technology, Musk’s presence is crucial.
The proposed plan includes 12 stages of stock options linked to ambitious goals, such as reaching an $8.5 trillion market cap and achieving major progress in autonomous driving and robotics.
Denholm added that the Elon Musk Tesla Salary Package aligns Musk’s interests with shareholders’ long-term value and company growth. She urged investors to re-elect the directors who have worked with Musk for years.
Earlier this year, a Delaware court in the U.S. canceled Musk’s 2018 compensation package, saying it was unfairly approved and negotiated by non-independent directors.
If shareholders reject the Elon Musk Tesla Salary Package, Musk may step down as CEO, which could greatly affect Tesla’s future.
