Elon Musk has been the high-profile CEO of Tesla since 2008, where he has helped shape the company into the cultural icon that it is today, but the company has warned that his days leading the company could be coming to an end if his massive compensation package is not approved.
In a letter shared to social media on Monday, Tesla chair Robyn Denholm warned shareholders that if they do not approve CEO Elon Musk’s unprecedented compensation package that could cost the company $1 trillion, Musk could leave the company.
“When negotiating this performance award, we necessarily considered what Tesla’s future without Elon would look like, and we did not believe it was the future that our shareholders deserve. At a time when companies—both big and small—are competing to be the first to bring groundbreaking AI technologies to market, we could not risk losing the best leader in the industry to put Tesla on top. Now is a pivotal moment for our company to emerge as a leader in AI, and with our exceptional CEO at the helm, we are perfectly positioned to seize it,” she wrote in the letter on Monday.
“Though it’s no question that Elon has other pursuits, he has proven that one of the many things that make him unique is his ability to stretch his capacity beyond normal limits and remain successful at Tesla. However, if we fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position, and Tesla may lose his time, talent and vision, which have been essential to delivering extraordinary shareholder returns,” the letter continues.
“Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we aim to become: a transformative force reimagining the fundamental building blocks of mobility, energy and labor, with products such as FSD and Optimus, and working to better humanity in the process. While there may be nothing wrong with being just another car company, our Board believes that Tesla can be more, that our shareholders deserve more, and that Elon is the right leader to help us achieve our full potential.”
Denholm concluded her letter with a significant call to action for all Tesla shareholders, urging them to vote in favor of the proposals.
“If you care about building a better world for humanity and supporting our vision for Sustainable Abundance—then you should vote “FOR” Proposals One, Three and Four,” she wrote.
“If you want Tesla to have a shot at becoming the world’s most valuable company—then you should vote “FOR” Proposals One, Three and Four,” she concluded.
Obviously, this is a pretty significant storyline for one of the most high-profile and culturally relevant companies on the globe right now. We’ll have to see whether or not Tesla approves this massive compensation package for their high-profile CEO.
About Dave Kelsey
Bets on sports stuff.