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Tesla ceo Elon Musk can leave company If his proposed $1 trillion Salary Not approved, the automaker’s board chairman Robin Denholm warned.
Denholm appealed shareholders A letter published on Monday, just a week before the company’s November 6 annual meeting, said the company’s board has come under criticism over its level of control. Shareholders have given Musk,
The proposed plan was designed to retain and motivate Musk, the richest man in the worldAt least for the next seven and a half years, Denholm wrote in the letter.
Denholm said Musk’s leadership was “critical” to Tesla’s success, and without a plan that would encourage him, the company could lose his “time, talent and vision.”
“Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we want to be,” he wrote.
Denholm said Musk’s leadership is what keeps Tesla from becoming “just another car company” as the EV maker focuses solely on self-driving vehicles and Optimus, also known as the Tesla bot.
huge proposed package Musk will receive 12 tranches of stock options tied to ambitious goals, including a market capitalization of $8.5 trillion and milestones in autonomous driving and robotics.
He could make up to $1 trillion in 10 years, provided Tesla hits all of its growth targets. His last deal in 2018, which earned $56 billion, also broke records at that time.
In his letter, Denholm emphasized that the package will be important to align Musk’s incentives with shareholder value and long-term growth. Along with this, he urged investors to re-select three long-held stocks. director Who has worked closely with Musk.
Tesla’s board has faced sharp criticism over its apparently close relationship with Musk. Earlier this year a Delaware court voided his 2018 pay deal, finding that it was improperly delivered and negotiated by directors who were not fully independent.
Meanwhile, several groups have come out in opposition to the pay package, with Institutional Shareholder Services, the world’s largest proxy advisory firm, urging investors to vote against some or all of it.
Musk himself spoke about the criticism he received over the proposed package during an earnings call last week, saying the advisory firms “don’t have a clue” and describing them as “corporate terrorists.”
Musk also suggested that, as things stand, he could potentially convince shareholders to remove him.
“My basic concern with respect to how much voting control I have at Tesla is, if I go ahead and build this huge robot army, could I be forced out at some point in the future?” He said, according to wired,
“If we build this robot army, will I at least have a strong influence on this robot army?”
“I don’t feel comfortable building a robot army here and then being kicked out because of some stupid recommendations from ISS and Glass Lewis,” he also reportedly said In the drawing room.
As part of the proposed compensation package, Musk’s stake in Tesla would increase from 13 percent to about 25 percent. cnbcHanded him more control over the company as it expands from EVs to AI, robotaxis and more optimus humanoid robot,
“I just think there needs to be enough voting control to have a strong impact, but not so much that I don’t get thrown out if I get crazy.” he added During the call.
Online shareholder votes regarding Musk’s new salary and other proposals are to be cast on or before 11:59 pm on November 5.
With reporting from Reuters.