With Tesla shareholders set to vote on a proposed 10-year, $1 trillion compensation bundle for CEO Elon Musk in November, board chair Robyn Denholm spoke to The New York Instances to defend what could be the biggest pay bundle in company historical past.
Denholm, who was additionally on the particular committee that put the compensation proposal collectively, argued that Musk must be motivated by extraordinary challenges tied to extraordinary compensation. On the similar time, she steered he’s much less within the further wealth that the promised Tesla shares would symbolize, and extra within the voting energy.
“I feel it’s somewhat bit bizarre speaking in regards to the {dollars} when it’s truly the voting affect,” stated Denholm, whom The Instances described as “sometimes showing unwell comfy” in the course of the interview.
It may additionally appear counterintuitive to supply such an enormous pay bundle when Tesla’s earnings and car gross sales are falling, however Denholm insisted that the plan is about “future efficiency.”
“It’s not about previous efficiency,” she stated. “He will get nothing if he doesn’t carry out in opposition to the targets.”
As TechCrunch beforehand famous, the bundle’s targets are significantly much less formidable than a number of the guarantees Musk has made about Tesla up to now.
