WASHINGTON (dpa-AFX) - Tesla board chair Robyn Denholm has requested shareholders to approve Elon Musk's massive $56 million pay package or risk losing him as the CEO of Tesla (TSLA).
'Elon is not a typical executive, and Tesla is not a typical company,' Denholm wrote in a letter to shareholders. 'So, the typical way in which companies compensate key executives is not going to drive results for Tesla. Motivating someone like Elon requires something different.'
The vote to approve the package would be held in the upcoming company's Annual Shareholder Meeting on June 13. Earlier, the package was discarded by Chancellor Kathaleen McCormick, calling it 'deeply flawed' as the package was approved due to Musk's substantial relation with the Board.
'What we recognized in 2018 and continue to recognize today is that one thing Elon most certainly does not have is unlimited time,' Denholm said. '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. But that requires reciprocal respect.'
In January, Musk had posted on X/Twitter seeking 25 percent voting share in the company or else he would build AI and robotics products 'outside of Tesla'.
Reportedly, the CEO is planning to build a supercomputer gigafactory for xAI in Memphis as well as develop AI program called Grok.
'We all made a commitment to Elon,' Denholm stated. '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.'
Also, Denholm urged shareholders to approve the proposal to reincorporate Tesla in Texas from Delaware, saying that, 'Texas provides stockholders with substantially equivalent governance rights as Delaware, and is expected to provide more certainty for the innovative, big-ticket decisions that Tesla is known for.'
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