Tesla chair says Elon Musk wants $46 billion pay plan to remain motivated

Elon Musk sitting down and speaking at a conference.

Enlarge / Elon Musk speaks onstage at SXSW on March 11, 2018, in Austin, Texas. (credit score: Getty Photos | Diego Donamaria )

Tesla Board Chairperson Robyn Denholm urged shareholders to re-approve CEO Elon Musk’s $46 billion pay package deal this week, saying the vote is “not concerning the cash” whereas suggesting that Musk may go away Tesla or commit much less time to the corporate if he is not correctly compensated.

“That is clearly not concerning the cash. Everyone knows Elon is among the wealthiest folks on the planet, and he would stay so even when Tesla have been to renege on the dedication we made in 2018,” Denholm wrote in a June 5 letter to shareholders.

Musk’s pay plan was nullified by a Delaware Court docket of Chancery ruling in January 2024 after a lawsuit filed by a shareholder. The ruling stated that Denholm had a “lackadaisical method to her oversight obligations” and “derived the overwhelming majority of her wealth from her compensation as a Tesla director.” It additionally stated most board members “have been beholden to Musk or had compromising conflicts,” and that the proxy info given to shareholders earlier than the 2018 vote was “materially poor.”

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