Tesla’s Proposed $1 Trillion Compensation for Elon Musk Defended by Board Chair Amid Falling Profits and Sales

In preparation for a shareholder vote on a proposed ten-year compensation plan valued at $1 trillion for CEO Elon Musk slated for November, board chair Robyn Denholm addressed The New York Times to justify what would be the most significant pay package in corporate history.

Denholm, who was also part of the special committee that formulated the compensation proposal, contends that Musk requires extraordinary incentives commensurate with challenging objectives. While acknowledging that the proposed Tesla shares could potentially add to his wealth, she emphasized that Musk is more concerned with the voting power they offer.

“It feels a bit peculiar discussing dollars when we’re actually talking about voting influence,” Denholm told The Times, who reported her as occasionally appearing somewhat uncomfortable during the interview.

The plan’s apparent contradiction in offering such an enormous payout amidst Tesla’s dwindling profits and decreasing vehicle sales may seem puzzling. However, Denholm clarified that the strategy focuses on “future performance.”

“It’s not about past performance,” she asserted. “He receives nothing unless he achieves the set targets.”

As previously highlighted by various sources, the package’s objectives are less ambitious than some of Musk’s prior assertions regarding Tesla’s potential.