Robyn Denholm, chairman of Tesla’s board of directors, is advocating for the approval of Elon Musk’s $56 billion compensation package. She believes that without this massive pay package, there is a risk of Musk leaving Tesla for other opportunities. The fate of Musk’s compensation package will be decided by Tesla shareholders on June 13. This will be the second time shareholders will be voting on CEO pay, as a previous vote was overturned earlier this year due to flaws in the approval process. The company is now working hard to convince shareholders to approve the proposal once again.
Denholm argues that Musk is not a typical executive, and Tesla is not a typical company, so a traditional compensation package would not be sufficient to motivate him. She highlights the importance of mutual respect and recognizes the value of Musk’s time and energy being dedicated to Tesla for the benefit of its owners. Despite concerns from investors and advisory bodies, early votes suggest that Musk’s compensation proposal may be approved, as a significant number of Tesla stockholders have already shown support for it.
Musk is seeking more control over Tesla, aiming to acquire a 25% stake in the company to advance his goals in developing AI and self-driving cars. His attention has been divided among various projects, leading to concerns about his focus on Tesla. However, Denholm emphasizes the importance of honoring the commitment to Musk and supporting his vision for Tesla to drive further value for shareholders. Musk’s compensation package is not about money, but about motivating him to continue creating value for the company and its shareholders.