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Tesla Board Warns Musk Could Leave If $1 Trillion Pay Plan Fails

Shareholders vote by Nov. 5 on a performance award the board says is needed to keep Musk focused on Tesla’s AI and robotics push.

Overview

  • Board chair Robyn Denholm urged investors in a letter to approve the package, calling the moment a critical inflection point and warning Tesla could lose Musk’s time, talent and vision.
  • The proposal grants 12 tranches of stock options tied to steep goals, including reaching an $8.5 trillion market value and milestones in autonomous driving and Optimus robot deployment over the next decade.
  • Proxy advisers ISS and Glass Lewis recommended voting against the plan, and Musk blasted the firms last week as “corporate terrorists” on Tesla’s earnings call.
  • Online voting closes Nov. 5, with preliminary results expected at Tesla’s Nov. 6 annual meeting.
  • Scrutiny is heightened after a Delaware court voided Musk’s 2018 award for lack of independent oversight, and the new plan could lift his ownership from about 13% to nearly 29% if targets are met.