Elon Musk may step down as Tesla CEO if $1 trillion compensation package is not approved

VTV.vn - Tesla President Robyn Denholm warned that Elon Musk could leave his position as CEO if his $1 trillion compensation package is not approved by shareholders.

The warning was issued in a letter to shareholders ahead of Tesla's annual general meeting, scheduled to take place on November 6.

Ms. Denholm said the new compensation plan is performance-based and is designed to retain and incentivize Musk to continue leading Tesla for at least the next seven and a half years. She stressed that Musk’s role is “critical” to the company’s success, and warned that without the right incentives, Tesla could lose his “time, talent, and vision.”

As Tesla aims to become a global leader in artificial intelligence and autonomous driving, Musk's commitment is vital to the company's strategic direction, Ms. Denholm said.

The proposed compensation package includes 12 tranches of stock options, tied to ambitious goals such as reaching a market capitalization of $8.5 trillion and significant progress in autonomous driving and robotics.

The letter also argued that the compensation package would align Mr. Musk’s interests with shareholder value and the company’s long-term growth. Ms. Denholm also called on shareholders to re-elect three veteran board members who have worked with Musk for many years.

Tesla’s board has come under scrutiny for years due to its close relationship with Mr. Musk. A Delaware court earlier this year rejected his 2018 compensation package, saying the deal was improperly approved and that the directors involved in negotiating it were “not fully independent.”

Source: https://vtv.vn/elon-musk-co-the-roi-ghe-ceo-tesla-neu-goi-luong-thuong-1000-billion-usd-khong-duoc-thong-qua-100251028084230066.htm