Tesla chair Robyn Denholm has warned that Elon Musk could leave the company if his proposed $1 trillion pay package is not approved.
Her concerns were outlined in a letter sent to shareholders on Monday, ahead of a board vote scheduled for 6 November on the billionaire’s compensation deal.
In the letter, Denholm explained that the performance-based pay would help motivate Musk and ensure his continued involvement with the company for the next seven years.
Musk’s leadership was described as “critical” to Tesla’s success, and Denholm cautioned that a package that fails to incentivise him might lead him to step away from the company altogether.
Tesla’s board has faced intense scrutiny for years. Earlier this year, a Delaware court struck down the compensation plan, ruling it inappropriately negotiated by directors who were not sufficiently independent.
