Tesla Board Warns of Musk Departure Risk as $1T Pay Package Faces Shareholder Vote
Tesla's board chair Robyn Denholm has issued a stark warning to shareholders: rejecting Elon Musk's proposed $1 trillion compensation package could trigger his departure, potentially eroding billions in market value. The electric vehicle maker's leadership argues Musk's vision is irreplaceable as Tesla pivots toward artificial intelligence development.
Institutional pushback mounts against the astronomical pay deal, with proxy advisor ISS labeling it excessive and labor groups launching a 'Take Back Tesla' campaign. Musk dismissed critics as 'corporate terrorists' during a heated earnings call, while Denholm emphasized the CEO's unique role in maintaining Tesla's technological edge.
The performance-based proposal includes 12 tiers of stock awards tied to market capitalization milestones between $2 trillion and $8.5 trillion. This comes as Tesla faces intensifying competition in both EV and AI sectors, where Musk's leadership remains a key differentiator for investors.