Tesla Board Chair Defends Elon Musk’s $1 Trillion Compensation Package Amid Shareholder Vote

Tesla Board Chair Defends Elon Musk’s $1 Trillion Compensation Package Amid Shareholder Vote

Tesla’s board chair, Robyn Denholm, spoke to The New York Times ahead of the November shareholder vote on CEO Elon Musk’s proposed 10-year, $1 trillion compensation package. Denholm, who also served on the special committee that crafted the plan, defended the unprecedented payout as a necessary incentive tied to future company performance and the extraordinary challenges Musk faces.

Denholm emphasized that the package is not about immediate financial reward but rather about securing Musk’s voting influence in Tesla. “I think it’s a little bit weird talking about the dollars when it’s actually the voting influence,” she said, acknowledging the unusual nature of the debate.

Despite Tesla’s recent declines in profits and vehicle sales, Denholm argued the compensation structure is forward-looking. “It’s not about past performance. He gets nothing if he doesn’t perform against the goals,” she stated, underscoring that Musk’s rewards depend entirely on meeting the outlined performance metrics.

However, some analysts have noted that the package’s performance targets are considerably less demanding than Musk’s earlier public commitments for Tesla’s growth, raising questions about the plan’s rigor.

During the interview, Denholm appeared occasionally uneasy but maintained that the extraordinary scale of Tesla’s ambitions justifies the historic compensation plan.