Car company CEOs come and go, but what is Tesla without Elon Musk? That’s essentially the question Tesla board chair Robyn Denholm is posing to the EV maker’s shareholders, pleading with them to approve Musk’s $56 billion (RM267 billion) pay package that would make him the best paid CEO in history. He might leave if things don’t go his way, it is said.
“Elon is not a typical executive, and Tesla is not a typical company. 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,” Denholm wrote in a letter to shareholders filed with the US Securities and Exchange Commission, The Verge reported.
According to the report, Denholm implied that Musk could head to “other places” without proper motivation. “What we recognised in 2018 and continue to recognise today is that one thing Elon most certainly does not have is unlimited time. 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,” she said.
Where could Musk make a difference? The billionaire certainly isn’t an idle mind – his other companies and projects include SpaceX, The Boring Company, Neuralink, X, and xAI, and some perceive that these are diverting his attention away from Tesla, which his name is synonymous with. Musk currently owns about 13% of the EV maker after selling shares to acquire Twitter in 2022.
Denholm insists that this isn’t about the money. “We all know Elon is one of the wealthiest people on the planet, and he would remain so even if Tesla were to renege on the commitment we made in 2018. We all made a commitment to Elon. Elon honored his commitment and produced tremendous value for our stockholders. Honouring our commitment to Elon demonstrates that we support his vision for Tesla and recognise his extraordinary accomplishments — this is what will motivate him to continue to create value for stockholders,” she said.
The fate of Musk’s gargantuan pay package will be decided by Tesla shareholders on June 13. It would be the second time they are voting on the CEO’s salary after a judge from Delaware state voided the first one earlier this year on the grounds that the approval process was “deeply flawed”.
So, will Elon Musk get what he wants and be the highest paid CEO in corporate history? We’ll know next week. But remember, it’s not about the money.
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