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Musk may quit Tesla if shareholders deny US$1t pay package - chair
“[I]f we fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position, and Tesla may lose his time, talent, and vision, which have been essential to delivering extraordinary shareholder returns,” the letter stated yesterday.
Denholm also noted in the letter that without Musk...
Tesla CEO Elon Musk may leave the company if shareholders don’t approve his nearly US$1 trillion pay package by the Nov 5 deadline, warned board chair Robyn Denholm in a letter.
“[I]f we fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position, and Tesla may lose his time, talent, and vision, which have been essential to delivering extraordinary shareholder returns,” the letter stated yesterday.
Denholm also noted in the letter that without Musk, Tesla could lose substantial value, as it would no longer be valued for its future potential.
“While there may be nothing wrong with being just another car company, our board believes that Tesla can be more, that our shareholders deserve more, and that Elon is the right leader to help us achieve our full potential,” Denholm wrote.
In September, the board proposed granting Musk over 423 million shares of Tesla’s common stock, representing 12 percent of the total shares, contingent on the company achieving 12 specified milestones, including an US$8.5 trillion market capitalisation for the final tranche.
This means that for Musk to receive the award, Tesla’s market value must increase by an additional US$7 trillion, given that the company’s current valuation is approximately US$1.42 trillion, and no later than by 2035.
If the company meets all milestones under Musk’s leadership, he is poised to increase his stake from approximately 13 percent to about 25 percent in the electric car maker.
Other milestones include achieving specific product targets, such as delivering 20 million Tesla vehicles and having at least one million Tesla Robotaxis in commercial operation.
- Bernama
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