In an urgent appeal to Tesla shareholders, Board Chair Robyn Denholm is urging approval of Elon Musk’s controversial $56 billion compensation package.
Set for a crucial vote on June 13th, the decision comes after a Delaware judge invalidated an earlier approval, citing a “deeply flawed” process.
Denholm’s message is clear: without this incentive, Musk could take his talents elsewhere. “Elon is not a typical executive, and Tesla is not a typical company,” Denholm wrote in a letter filed with the Securities and Exchange Commission. “Motivating someone like Elon requires something different.”
Musk, already among the wealthiest individuals on the planet, has numerous ventures demanding his attention, from SpaceX to Neuralink. His unique position and visionary leadership are what Tesla seeks to retain with this unprecedented pay package.
“One thing Elon most certainly does not have is unlimited time,” Denholm stressed. “Nor does he face any shortage of ideas and other places he can make an incredible difference in the world. We want those ideas, that energy, and that time to be at Tesla, for the benefit of you, our owners.”
The stakes are enormous. Approving Musk’s compensation would make him the most highly compensated CEO in modern history. However, Denholm emphasizes that the package is “not about the money.” Instead, it’s about securing Musk’s commitment to Tesla’s future.
“We all know Elon is one of the wealthiest people on the planet,” she wrote. “He would remain so even if Tesla were to renege on the commitment we made in 2018.”
Investors are nervous about Musk’s potential departure. His attention is divided among multiple high-profile projects, and Tesla, his main source of wealth and fame, needs his focused leadership.
Proxy firms have advised against the compensation package, but early voting indicates strong shareholder support. A report from trading platform eToro last month revealed that of the 25 percent of shares that have already voted, over 80 percent favor Musk’s package.
Musk is also seeking more control over Tesla, aiming for a 25 percent stake to advance his ambitious goals in artificial intelligence and self-driving technology. Currently, he holds about 13 percent of the company, having sold billions in shares to fund his acquisition of Twitter.
On his social media platform, X, Musk has even hinted at spinning off Tesla’s AI efforts into a separate entity if his demands are unmet.
Denholm’s letter is a stark warning: Musk could leave if not sufficiently motivated. “We all made a commitment to Elon,” she wrote.
“Elon honored his commitment and produced tremendous value for our stockholders. Honoring our commitment to Elon demonstrates that we support his vision for Tesla and recognize his extraordinary accomplishments — this is what will motivate him to continue to create value for stockholders.”
As the vote approaches, Tesla’s shareholders face a pivotal decision: secure Musk’s leadership with an unprecedented pay package or risk losing the visionary behind the company’s meteoric rise.
