Tesla’s board chair, Robyn Denholm, is imploring the company’s shareholders to approve CEO Elon Musk’s massive $56 billion compensation package, hinting that failure to do so could lead to Musk’s departure from the electric vehicle giant.
The Verge reports that in a letter filed with the SEC, Denholm emphasizes the importance of securing Musk’s commitment to Tesla, stating that “Elon is not a typical executive, and Tesla is not a typical company.” She argues that motivating someone like Musk requires a unique approach, and the proposed pay package is essential to keep him focused on the company’s goals.
The upcoming shareholder vote on June 13 will mark the second time that Musk’s compensation package has been put to a vote. A previous approval was voided by a Delaware judge earlier this year, citing a “deeply flawed” approval process. Despite this setback, Tesla’s board remains adamant about the necessity of the package, which would make Musk the most highly compensated CEO in modern history.
Tesla CEO Elon Musk unveils the new Tesla factory in Fremont, Calif., Wednesday, Oct. 27, 2010. The new Tesla factory is the former NUMMI plant. (AP Photo/Paul Sakuma)
Denholm’s letter carries a subtle warning, suggesting that without proper motivation, Musk could turn his attention to “other places” where he can make a significant impact. “What we recognized in 2018 and continue to recognize today is that one thing Elon most certainly does not have is unlimited time,” she writes. “Nor does he face any shortage of ideas and other places he can make an incredible difference in the world.”
The board chair insists that the vote is “not about the money,” acknowledging Musk’s status as one of the wealthiest people on the planet. Instead, she frames the package as a demonstration of reciprocal respect and a commitment to supporting Musk’s vision for Tesla.
Several proxy firms have advised against approving the pay proposal, but early voting indicates that Musk may still secure the package. A report by trading platform eToro revealed that approximately 25 percent of Tesla’s shares have already been voted, with more than 80 percent in favor of the compensation plan.
Musk’s growing interest in artificial intelligence and self-driving cars has led him to seek a 25 percent stake in Tesla, up from his current 13 percent holding. He has even threatened to spin out Tesla’s AI work into a separate company if his demands are not met.
Read more at the Verge here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.