He will leave the position of the managing director if the proposed salary package of 1 trillion is not approved. dollars, Chairman Robin Denholm warned in a letter to shareholders on Monday.
The call comes ahead of the Nov. 6 annual meeting, with its board facing repeated criticism that it is not acting in the best interests of shareholders and governance experts and advocacy groups questioning Musk’s independence and oversight of influence.
What does the president say in her letter?
The proposed performance-based plan was designed to retain and incentivize Musk to continue leading Tesla for at least another seven and a half years, Delhomme said in the letter.
Musk’s leadership was “critical” to Tesla’s success, he said, and warned that without a plan to properly incentivize him, the company could lose his “time, talent and vision.” Musk’s role is crucial as Tesla seeks to become a global leader in artificial intelligence and autonomous technology, he said.
The proposed package would grant Musk 12 tranches of stock options tied to ambitious goals, including an $8.5 trillion market capitalization. dollars and milestones in autonomous driving and robotics.
Her letter casts the package as necessary to align Musk’s motivations with shareholder value and long-term growth, while also urging investors to re-elect three long-serving executives who have worked closely with him.
Tesla’s board has been under scrutiny for years because of its close relationship with Musk. A Delaware court earlier this year struck down his 2018 pay deal, finding it was improperly commissioned and negotiated by directors who were not fully independent.
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