Board chair says EV maker risks losing him as CEO
Tesla CEO Elon Musk attended the Saudi-US Investment Forum in Riyadh, Saudi Arabia, on May 13, 2025.
Hamad I Muhammad | Reuters
Tesla’s In a letter Monday, Chairman Robyn Denholm asked shareholders to vote on CEO Elon Musk’s nearly $1 trillion pay package ahead of the company’s annual meeting.
Denholm said Musk is key to the future of the electric vehicle maker, which is moving beyond being “just another car company” by focusing more on Full Self-Driving and Optimus.
“Without Elon, Tesla could lose significant value because our company may no longer be valued at our intended value,” Denholm wrote.
Tune in at 8:30 a.m. ET as Tesla Chairman Robyn Denholm joins CNBC’s “Squawk Box” to discuss the company’s annual meeting and Musk’s pay package. Watch in real time on CNBC+ or CNBC Pro streaming.
Several groups have publicly opposed the pay package in recent days, and proxy advisor Institutional Shareholder Services has recommended against it.
Last week, a group of unions and corporate watchdogs launched a campaign. Take Tesla Back The website opposed the pay package, pointing out Musk’s embrace of right-wing political movements and amplification of conspiracy theories that are damaging the brand.
Tesla’s annual meeting is on November 6 shareholder vote Musk’s salary and other offers will close on November 5 at 11:59pm ET.
Tesla released its third-quarter financial report last week, missing earnings expectations but reporting a 12% increase in revenue after two consecutive periods of decline.
The proposed plan for Musk, outlined by the board of directors in September, consists of 12 share tranches that will be given to Musk if Tesla reaches a certain goal. milestones.
It would also give Musk increased voting power over the company, which he publicly requested last year and mentioned again in Tesla’s earnings call last week, citing the growth of Optimus robots.
“If we build this robot army, will I have at least a strong influence on that robot army?” Musk said: “I don’t feel comfortable building that robot army unless I have at least a strong influence.”
The entire award will give Musk, who already owns about 13% of the EV maker, more than 423 million additional shares.
“Unless we foster an environment that motivates Elon to achieve great things through a fair pay-for-performance plan, we risk him relinquishing his executive position and losing the time, talent, and vision necessary to deliver Tesla’s outstanding shareholder returns,” Denholm wrote.
Denholm also asked shareholders to vote to re-elect Ira Ehrenpreis, Joe Gebbia and Kathleen Wilson-Thompson to the board.
Tesla’s annual stock chart.
