Elon Musk has threatened to step down as CEO of Tesla if his proposed US$1 trillion bonus is rejected in a shareholder vote.
The information was shared by Tesla board chair Robyn Denholm in a letter to shareholders last Monday (27). Elon Musk’s US$1 trillion bonus will be voted on at the annual meeting scheduled for November 6.
According to Denholm, Musk’s compensation plan was created to retain and motivate the entrepreneur to remain at the helm of Tesla for another seven and a half years. The bonus would be granted to Musk based on the company’s performance and the achievement of a series of goals set by the company.
Musk’s leadership was described by Denholm as “fundamental” to Tesla’s success, adding that without a compensation plan that properly motivates him, the company could lose his “time, talent, and vision.”
While electric vehicle sales continue to face major declines, Musk is promoting the idea of transforming Tesla into a leader in artificial intelligence, robotics, and autonomous driving technology.
The bonus also comes as Tesla continues to battle the Delaware Supreme Court over the annulment of a US$55.8 billion pay package proposed for Musk in 2018.
At the time, Judge Kathaleen McCormick said the compensation was “an unimaginable amount” of money and unfair to other shareholders.
It is worth noting that Musk does not receive a salary for serving as CEO of Tesla. Even so, Elon Musk remains the richest person in the world, with a substantial lead in wealth over the second richest, Larry Ellison, founder and CEO of Oracle.
Photo: Creative Commons. This content was created with the help of AI and reviewed by the editorial team.
