Tesla Board Urges Shareholders to Approve Elon Musk’s $1 Trillion Pay Package
Tesla Board Chair Robyn Denholm yesterday asked shareholders to vote in favor of CEO Elon Musk’s nearly $1 trillion compensation package, ahead of the company’s annual meeting next month, a move that could significantly impact the future direction of the electric vehicle giant.
In a letter to shareholders, Denholm emphasized Musk’s critical role in Tesla’s evolution beyond a traditional automaker, particularly as the company focuses on advancements in Full Self-Driving technology and the development of Optimus robots. “Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we aim to become,” she wrote. The proposed plan, outlined in September, consists of 12 tranches of shares granted to Musk upon achieving specific milestones, and would increase his voting power within the company.
However, the package faces opposition from several groups, including proxy advisor Institutional Shareholder Services, which has recommended against its approval. A coalition of unions and corporate watchdogs, operating under the Take Back Tesla website, have voiced concerns over Musk’s political stances and their potential damage to the Tesla brand. During last week’s earnings call, Musk publicly reiterated his desire for increased control over the company, particularly regarding the future of Optimus. “If we build this robot army, do I have at least a strong influence over that robot army?” he asked, adding, “I don’t feel comfortable building that robot army if I don’t have at least a strong influence.” Tesla’s investor relations website provides further details on the proposed compensation plan.
Shareholders will vote on Musk’s pay package and board re-elections – including Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson – at the annual meeting on November 6, with voting closing at 11:59 p.m. ET on November 5. Denholm stated the increased voting influence is “less about compensation and more about the voting influence,” ensuring Musk can steer the company’s AI development.
