Tesla could lose Musk if $1T pay package isn't approved, board chair warns

Core Viewpoint - Tesla's board chair has emphasized that failing to approve Elon Musk's proposed $1 trillion pay package could jeopardize the company's leadership and overall value, highlighting the critical nature of the upcoming shareholder vote [1][6]. Compensation Proposal - The board initially proposed a new compensation plan for Musk in September, potentially worth $1 trillion, which would be the largest executive pay package in history, contingent on achieving ambitious targets [2]. - The proposal includes granting Musk up to approximately 12% of Tesla's stock, valued at about $1 trillion, if the company reaches a market capitalization of $8.5 trillion and meets other operational milestones over a decade [3]. Strategic Importance - Denholm stated that failing to create a motivating environment for Musk could result in losing his leadership, which is crucial for delivering significant shareholder returns [6]. - The company aims to be recognized as a transformative force in mobility, energy, and labor, with products like Full Self-Driving (FSD) and Optimus, which are essential for its future valuation [7]. Shareholder Influence - Musk has indicated that the approval of the compensation package is not solely about financial gain but about maintaining sufficient control to influence the company's direction while ensuring accountability [9][11].