Oct. 27 (UPI) — Tesla’s board chair says CEO Elon Musk may not stay if shareholders don’t vote yes on Musk’s nearly $1 trillion payout.
The shareholder vote for Musk’s benefits and other Tesla proposals closes before noon Nov. 5.
“Without Elon, Tesla could lose significant value, as our company may no longer be valued for what we aim to become,” Robyn Denholm warned Monday.
Musk’s net worth is more than $400 billion, according to Forbes. His compensation plan would add about $900 billion and 423 million additional shares, giving Musk roughly a 25% ownership stake.
His deal was unveiled last month. It would give Musk, the former White House DOGE adviser to U.S. President Donald Trump, greater voting power at Tesla.
On Monday, Denholm claimed the electric vehicle maker was at a “critical inflection” point, and that losing Musk could mean Tesla loses “significant value.”
“The fundamental question for shareholders at this year’s annual meeting is simple: Do you want to retain Elon as Tesla’s CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?” Denholm asked rhetorically.
Tesla reported Oct. 22 that its profits were down 37% in the third quarter, a few months after Musk was granted a “good faith” $29 billion pay package.
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