Is Elon Musk Really Leaving Tesla? Chair Sounds Alarm Over $1 Trillion Pay Plan

Elon Musk’s future at Tesla may hinge on a massive $1 trillion pay package set for a shareholder vote on November 6, according to a stark warning from the company’s Chair, Robyn Denholm. 

In a letter to investors on Monday, Denholm said Musk could leave Tesla if the plan is not approved, emphasizing that his leadership is “critical” to the company’s continued success.

“Without Proper Incentives, We Risk Losing His Vision”
Denholm’s letter highlighted that the proposed performance-based plan is meant to retain and motivate Musk for “at least another seven-and-a-half years.”

She cautioned that without a compensation structure that “properly incentivizes” Musk, Tesla could lose his “time, talent, and vision”, key elements behind its rise as a global electric vehicle and clean technology leader.

The plan would grant Musk 12 tranches of stock options tied to aggressive performance targets, including achieving a market capitalization of $8.5 trillion and milestones in autonomous driving and robotics.

Governance Under Scrutiny
Tesla’s board, long criticised for its close ties to Musk, has faced renewed scrutiny following a Delaware court’s decision earlier this year that struck down Musk’s 2018 pay deal, citing conflicts of interest and inadequate board independence.

Denholm defended the new package as a fair way to “align Musk’s incentives with shareholder value and long-term growth,” while urging investors to also re-elect three long-serving directors who have worked closely with him.

A Critical Moment for Tesla’s Future
As Tesla pushes deeper into artificial intelligence and autonomous technology, Denholm warned that Musk’s continued engagement is vital. “Musk's role was vital as Tesla seeks to become a global leader in artificial intelligence and autonomous technology,” she wrote.

With the high-stakes vote approaching, investors will decide not just on Musk’s pay, but potentially on Tesla’s leadership future.

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(With Inputs From Reuters)