Elon Musk's fate if he doesn't receive $1,000 billion

Tesla Chairman Robyn Denholm publicly defended Elon Musk's $1 trillion pay package as completely deserved and the only way to keep the billionaire's focus on the company.

Elon Musk may leave Tesla if $1 trillion pay package is not approved. Photo: Reuters .

In a letter to shareholders on October 27, Tesla Chairman Robyn Denholm warned that the company's future was at stake and said that Elon Musk could leave his position as CEO if the $1 trillion pay package was not approved.

Ms. Denholm said the proposed compensation package is intended to retain and motivate Mr. Musk to continue leading Tesla for at least another 7.5 years.

Tesla's chairman stressed that Musk's leadership is "critical" to Tesla's success and stressed that without a proper incentive plan, the company could lose the billionaire's "time, talent and vision."

The compensation package, pending shareholder approval, could give Musk an additional 423.7 million shares, or $1 trillion , if Tesla's market value surges toward its target milestones, including reaching a market capitalization of $8.5 trillion and hitting milestones in autonomous driving and robotics.

According to a proxy filing sent to shareholders, the package will be put to a vote on November 6. Tesla describes it as a unique deal, tied to its mission to “transform Tesla into an AI and robotics company beyond just selling cars.”

If this proposal is passed, Elon Musk will become the world's first trillionaire, according to CNN .

However, Elon Musk said Tesla is currently under pressure from two major financial advisory organizations, ISS and Glass Lewis, which often make recommendations on how shareholders vote. He believes these organizations are trying to manipulate power within Tesla.

Previously, these two organizations had advised shareholders to oppose Musk's hundreds of billions of dollars in bonus packages, but 73% of shares (excluding Musk and his brother's shares) still voted in favor in 2018.

After a Delaware court declared the bonus package “not in the best interests of shareholders,” Tesla held a re-vote, and the result was that 84% of shares continued to support Musk.

Source: https://znews.vn/so-phan-elon-musk-khi-khong-nhan-duoc-1000-ty-usd-post1597686.html