Musk could leave tesla if shareholders reject $1t pay package, board chairman warns

The Chairman of Tesla’s board warned shareholders in a letter that failure to approve Elon Musk’s $1 Trillion Pay Package could put the company at risk of losing its CEO and “huge value.”

“Do you want to keep Elon as CEO of Tesla and motivate him to drive Tesla into a leading provider of autonomous solutions and the most valuable company in the world?” Board chairman Robyn Denholm said in a letter to shareholders, calling the vote that will take place during TESLA’s 6th annual meeting “Critical” about the future of the company and the delivery of some extraordinary shares returns.

Tesla’s board of directors initially considered Musk’s new compensation plan in September. It would be worth over $1 trillion, marking what would be the largest pay package in history. However, it depends on certain ambitious strategies that have been achieved.

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The Board’s proposal would give Musk up to 12% of Tesla’s stock, which is worth about $1 trillion, if the automaker sticks to a market cap of $8.5 trillion and other related items over 10 years. The company’s current market value is just north of $1.4 trillion.

Tesla cars are on display at the Tesla store in Palo Alto, California, United States. (Yichuan cao / nurphoto via Getty Images)

“If we fail to encourage the environment that motivates Elon to achieve good things with a payment system that does not have work, and Tesla can lose his time, Tesla and the vision, which was important in bringing back the miracle,” said Denholm.

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Denkhom argued that the company may still be informed of what it aims to be: a dynamic force that restores the basic blocks of movement, strength and optimism, and works for a better personality in the process. ”

Cesla CEO Elon Musk speaks about Onstage during an event in Cannes, France. (Photo by Richard Bord / Reanemage Via Getty Images)

The message is Echi’s Denhol’s Previous Letter to investors, where he laments “keeping Elon is important to Tesla reaching these goals and being the most important company in history.”

Musk was given at the end of the company’s most recent earnings to explain to investors who agree to this package not about money but about getting enough power for Helm.

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Musk told shareholders last week that he wants enough voting control “to give me a strong influence, but not so much that I can’t be fired if I’m crazy.”

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Since Tesla is a public company, Musk said there is no way to increase his voting control because the rules prevent creating special “super-voting” shares or changing ownership structures after the IPO.