Tesla chair says Elon Musk may leave without $1 trillion pay plan | World News
Elon Musk attends the finals for the NCAA wrestling championship. (AP)
Elon Musk could step away as Tesla’s chief executive if shareholders reject his proposed $1 trillion pay package at the company’s annual meeting on 6 November, the carmaker’s chair Ron Denholm has warned.
In a letter to investors, Denholm said the performance-based plan was designed to keep Musk leading Tesla for “at least another seven-and-a-half years,” Reuters reported.
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She said Musk’s leadership was “critical” to the company’s future and warned that without a package that encourages him to stay, Tesla could lose his “time, talent and vision,” as quoted Reuters. She added that his role is important as Tesla aims to expand in artificial intelligence and autonomous driving technology.
What the plan includes
The proposed package would give Musk 12 blocks of share options if Tesla hits large targets, including a market value of $8.5 trillion and progress in self-driving systems and robotics, Reuters said.
Denholm said the package would connect Musk’s rewards to long-term growth and shareholder value, according to Reuters. She also asked investors to re-elect three long-serving directors who have worked closely with Musk.
Tesla’s board has been criticised some shareholders and governance experts who say it has not shown enough independence from Musk. Earlier this year, a Delaware court cancelled his 2018 pay deal, saying it was not properly handled directors who were not fully independent.
