Tesla CEO Elon Musk Faces Historic Compensation Proposal

In a move set to stir debate, Tesla shareholders are scheduled to vote in November on a groundbreaking 10-year, $1 trillion compensation plan for CEO Elon Musk. This proposal would mark the largest pay package in corporate history.

Robyn Denholm, chair of Tesla’s board and a member of the special committee that devised the plan, defended the significant proposal in an interview with The New York Times. She emphasized that Musk’s motivation stems from tackling extraordinary challenges, which justify such exceptional compensation. Interestingly, Denholm pointed out that Musk appears more interested in gaining voting influence than in the additional Tesla shares that would be part of the package.

"I think it’s a little bit weird talking about the dollars when it’s actually the voting influence," Denholm remarked, despite seeming somewhat uncomfortable during the interview.

While critics may question the package amid Tesla’s recent drops in profits and vehicle sales, Denholm argued that the plan is geared toward “future performance” rather than past achievements. She clarified that Musk would receive nothing unless he meets the set goals, underscoring the performance-based nature of the compensation.

As previously reported by TechCrunch, the targets set within the plan are relatively modest compared to some of Musk’s past ambitious promises for Tesla’s future.