Tesla shareholders are set to vote in November on a proposed ten-year compensation package for CEO Elon Musk that could be worth up to one trillion dollars. Board chair Robyn Denholm recently spoke to defend what would be the largest pay package in corporate history. Denholm, who was on the special committee that created the proposal, argued that Musk requires extraordinary challenges tied to extraordinary compensation to remain motivated.
She suggested that for Musk, the package is less about the additional wealth the Tesla shares would represent and more about the voting power they convey. Denholm stated that it feels a little bit weird to talk about the dollar amount when the focus is actually on voting influence.
This massive pay proposal comes at a time when Tesla’s profits and vehicle sales are falling. Denholm insisted the plan is entirely about future performance, noting that Musk gets nothing if he does not perform against the established goals. However, it has been noted that the package’s goals are considerably less ambitious than some of the promises Musk has made about Tesla in the past.