Summary
Tesla Board Chair Robyn Denholm has warned that Elon Musk might leave his role as CEO if a proposed $1 trillion pay package is not approved by shareholders. The package includes performance-based stock options meant to keep and motivate Musk, linking them to Tesla's growth targets. Shareholders will vote on the package at Tesla's annual meeting on November 6.
Key Facts
- Elon Musk could step down as Tesla CEO if a $1 trillion pay package is not approved.
- The warning came from Tesla Board Chair Robyn Denholm in a letter to shareholders.
- The shareholder vote on the pay package will take place at Tesla's annual meeting on November 6.
- The proposed package includes 12 stock option tranches linked to Tesla's performance goals.
- Tesla aims to become a leader in artificial intelligence and autonomous technology, with Musk's role seen as crucial.
- Proxy advisory firms have suggested shareholders vote against the package.
- Tesla's stock price has recently increased by 3.1% despite the ongoing discussions.
- A court earlier invalidated Musk's 2018 pay deal, citing it was not properly awarded.
