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4mo ago

Tesla Board Advances Musk Pay Review Amid Leadership and Governance Challenges

A special committee led by Robyn Denholm is considering new compensation options for Elon Musk as Tesla appeals the court voiding his $56 billion pay package.

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Elon Musk Tesla Money hero
Robyn Denholm's biggest asset as Tesla chair is her understanding not to interfere in CEO Elon Musk running the company, supporters say, and it's paid off for shareholders.

Overview

  • Tesla's board has formed a special committee, composed of Robyn Denholm and Kathleen Wilson-Thompson, to evaluate new compensation options for CEO Elon Musk.
  • This follows a Delaware court's January 2024 decision to void Musk's record $56 billion 2018 pay package, citing a lack of independent board oversight.
  • The board has delayed its proxy filing and may postpone its annual shareholder meeting to finalize a proposal for Musk's revised compensation plan.
  • Board chair Robyn Denholm has faced scrutiny after selling nearly $200 million in Tesla stock over the past six months, bringing her total stock sales since 2018 to over $530 million.
  • Tesla's stock has dropped 32% since December, driven by declining EV sales and controversies surrounding Musk's political involvement and leadership focus.