Tesla’s Controversial $1 Trillion Compensation Package for Elon Musk Defended by Board Chair Robyn Denholm Amidst Falling Profits

In the upcoming November shareholder vote, a proposed 10-year, $1 trillion remuneration plan for CEO Elon Musk is under scrutiny. Robyn Denholm, board chair, defended this historically unprecedented compensation to The New York Times, emphasizing that extraordinary challenges call for extraordinary incentives for Musk.

Denholm, who was also part of the committee responsible for drafting the proposal, underscored that Musk seeks motivation beyond just financial rewards, highlighting his focus on voting influence instead. According to the publication, Denholm appeared somewhat uncomfortable during the interview.

The apparent contradiction of offering such an immense pay package amidst declining profits and vehicle sales for Tesla might seem puzzling. However, Denholm clarified that the strategy is geared towards future performance rather than past achievements.

“It’s not about past performance,” she stated. “He gets nothing if he doesn’t meet the set targets.”

Previously reported by an unnamed source, the plan’s objectives are less ambitious compared to some of Musk’s previous claims regarding Tesla’s potential.