Musk may quit Tesla without $1T pay package
What's the story
Tesla Chair Robyn Denholm has warned shareholders that Elon Musk may resign as CEO if his proposed $1 trillion performance-based pay package is not approved. The warning comes ahead of Tesla's annual meeting on November 6. Denholm said the plan is key to keeping Musk at the helm for another seven-and-a-half years, stressing his leadership is "critical" to Tesla's success.
Package details
Proposed pay package linked to ambitious targets
The proposed pay package would award Musk 12 tranches of stock options based on ambitious targets such as an $8.5 trillion market cap and milestones in autonomous driving and robotics. Denholm said the plan aligns Musk's interests with long-term shareholder value. She also urged investors to re-elect three long-serving directors who have closely worked with him, amid criticism over Tesla's board for its close ties to Musk.
Defense
Musk defends pay package, slams proxy advisory firms
Musk has defended the proposed pay package as necessary to protect Tesla's future. He said, "It's not like I'm going to go spend the money," during a recent investor call. The billionaire also criticized proxy advisory firms ISS and Glass Lewis for advising shareholders to reject the plan, calling them "corporate terrorists." He said he doesn't want to be ousted because of their "asinine recommendations."