Elon Musk May Leave Tesla If $56 Billion Pay Not Approved, Board Chair Warns

Elon Musk May Leave Tesla If $56 Billion Pay Not Approved, Board Chair Warns

Keywords: Elon Musk, Tesla, pay package, board chair, departure

Elon Musk, the CEO of Tesla, may leave the company if his proposed $56 billion pay package is not approved by shareholders. This warning was issued by Tesla’s board chair, Robyn Denholm, in a recent letter to investors.

The proposed pay package would be the largest ever given to a CEO in U.S. history. It consists of stock options that would vest over 12 years, provided that Tesla meets certain performance targets. The board believes that this package is essential to retain Musk and incentivize him to continue driving Tesla’s success.

However, some shareholders have expressed concerns about the size and structure of the pay package. They argue that it is excessive and that it could lead to Musk neglecting his other responsibilities, such as running SpaceX.

The board has scheduled a shareholder vote on the pay package for March 5. If the package is not approved, Musk has said that he may “have no choice but to leave the company.”

Musk’s departure would be a major blow to Tesla. He is the company’s founder, CEO, and chief designer. He has played a pivotal role in Tesla’s success, and his departure would create significant uncertainty about the company’s future.

The board is urging shareholders to approve the pay package, arguing that it is in the best interests of the company. “We believe that Elon is the right person to lead Tesla,” Denholm wrote in her letter. “We are asking shareholders to vote for the compensation proposal so that we can continue to benefit from his leadership.”

It remains to be seen whether shareholders will approve the pay package. The vote is likely to be close, and the outcome could have a significant impact on the future of Tesla.