Bret Hartman
Denholm explained in a letter to shareholders that the board's suggestion is meant to encourage Musk to continue leading the company for at least the next seven and a half years. A shareholder meeting is set for November 6 to address issues related to CEO compensation and other topics.
Denholm emphasized that retaining Musk's leadership is crucial to Tesla's future success. She warned that if the compensation plan is not approved, the company could face the loss of Musk's "talent and vision" at a critical time, as Tesla aims to become a global leader in artificial intelligence and autonomous driving technologies.
Under the compensation plan, Musk would receive payments in the form of Tesla shares, with payments tied to the company's performance. Payments would be made in stages, depending on achieving specific market capitalization and operating performance targets. The maximum amount would be paid if Tesla's market value reaches $8.5 trillion by 2035 and its adjusted EBITDA reaches $400 billion. In that scenario, Musk would be awarded about 12% of the company's shares, valued at approximately $1.03 trillion.
source: bloomberg.com
Denholm emphasized that retaining Musk's leadership is crucial to Tesla's future success. She warned that if the compensation plan is not approved, the company could face the loss of Musk's "talent and vision" at a critical time, as Tesla aims to become a global leader in artificial intelligence and autonomous driving technologies.
Under the compensation plan, Musk would receive payments in the form of Tesla shares, with payments tied to the company's performance. Payments would be made in stages, depending on achieving specific market capitalization and operating performance targets. The maximum amount would be paid if Tesla's market value reaches $8.5 trillion by 2035 and its adjusted EBITDA reaches $400 billion. In that scenario, Musk would be awarded about 12% of the company's shares, valued at approximately $1.03 trillion.
source: bloomberg.com