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Tesla Warns Musk Could Leave if $1 Trillion Pay Plan Fails at Nov. 6 Vote

Proxy advisers urge a no vote, citing dilution risks alongside weak board independence.

Overview

  • Board chair Robyn Denholm told shareholders in a letter that Elon Musk may exit his executive role if the proposed compensation is not approved.
  • Investors vote at the Nov. 6 annual meeting, with ballots due by midnight on Nov. 5, making the decision a near-term test for the company.
  • The proposal grants 12 tranches of stock options tied to long‑term financial and technology milestones, including a market value target of $8.5 trillion plus advances in autonomy, robotaxis and humanoid robots.
  • Denholm framed the plan as essential to retain Musk for roughly seven and a half more years, warning that losing him could erode Tesla’s market value.
  • Glass Lewis and ISS recommend rejection, with Glass Lewis estimating the plan could issue up to 432 million new shares and lift Musk’s stake toward 30%, while a Delaware court earlier voided his 2018 pay plan over independence concerns.