Tesla shareholders are gearing up to vote on a monumental 10-year, $1 trillion compensation package for CEO Elon Musk in November. Board chair Robyn Denholm recently spoke to The New York Times to defend what could potentially be the largest pay package in corporate history.
Denholm, who played a key role in crafting the compensation proposal, emphasized the need for Musk to be incentivized by extraordinary challenges linked to extraordinary compensation. She suggested that Musk’s focus lies more on the voting power that the promised Tesla shares would bring, rather than the additional wealth.
“I think it’s a little bit weird talking about the dollars when it’s actually the voting influence,” shared Denholm, who The Times described as occasionally appearing uncomfortable during the interview.
Despite Tesla experiencing a decline in profits and vehicle sales, offering such a substantial pay package may seem counterintuitive. However, Denholm emphasized that the plan is centered around “future performance” rather than past achievements.
“It’s not about past performance,” she reiterated. “He gets nothing if he doesn’t perform against the goals.”
As highlighted by DailyTech, the package’s goals are notably less ambitious compared to some of Musk’s previous commitments regarding Tesla.
