Tesla Chair seeks approval for $56 million pay package to retain Musk as CEO

From Nasdaq: 2024-06-07 16:44:22

Tesla board chair Robyn Denholm is asking shareholders to approve an incentive package for Elon Musk worth $56 million to keep him as CEO, citing his unique executive style and company’s needs. The vote will take place on June 13 after a previously discarded proposal due to Musk’s relationship with the board.

Denholm emphasized the need to motivate Musk with unconventional compensation, recognizing his time constraints and value to the company. Musk had previously threatened to focus on AI and robotics if he did not receive a 25 percent voting share in the company. His plans include building a supercomputer gigafactory in Memphis and developing an AI program called Grok.

Acknowledging Musk’s contributions, Denholm called for shareholders’ support to honor their commitment to him, emphasizing the importance of his vision for Tesla. She also proposed relocating Tesla’s incorporation to Texas from Delaware for better governance rights and decision-making processes.



Read more at Nasdaq: Tesla Chair Hints At Musk Exodus If Shareholders Didn’t Approve $56 Bln Pay Package