The New York Times reported that Tesla Board Chair Robyn Denholm is vigorously defending a proposed compensation package for CEO Elon Musk, potentially valued at nearly $1 trillion. This audacious plan, detailed in a recent regulatory filing, is set for a shareholder vote at Tesla’s annual meeting in November 2025. The package, described as the largest in corporate history, ties Musk’s rewards to unprecedented milestones, including deploying one million autonomous taxis, producing one million humanoid robots, boosting profits 24-fold, and elevating Tesla’s market value from $1 trillion to $8.5 trillion by 2035. It also aims to increase Musk’s voting power from 13% to 25%, a move Denholm says will motivate him to drive Tesla’s next growth phase.
Denholm, in an hourlong interview, emphasized the package’s performance-based structure: “He gets nothing if he doesn’t perform against the goals.” She argued it incentivizes Musk to pioneer transformative technologies like AI and robotics, dismissing the astronomical dollar figure as secondary to voting influence. The plan, crafted over 10 meetings with a special committee including Denholm and Kathleen Wilson-Thompson, requires Musk to remain with Tesla for at least seven and a half years. This follows a Delaware court ruling (under appeal) that voided Musk’s 2018 compensation package for undue influence, raising questions about board independence, especially given its inclusion of Musk’s allies and brother, Kimbal.
Tesla’s recent struggles—declining sales, shrinking profits, and the Cybertruck’s lackluster launch—intensify scrutiny of the proposal. Competition from Chinese automakers like BYD and Geely threatens Tesla’s market position, while Musk’s political activities, including time spent with President Trump, have sparked concerns about divided focus. Denholm brushed these off, asserting Musk’s commitment to Tesla and defending his free speech. However, critics like New Mexico State Treasurer Laura Montoya, whose pension funds hold Tesla shares, called the package “unconscionable,” arguing it’s excessive for “the richest man in the world” leading a company facing reputational and financial challenges.
The vote will be a referendum on Musk’s vision versus Tesla’s operational realities. Approval could cement Tesla’s pivot to AI and robotics, but rejection might push Musk toward ventures like xAI or SpaceX. With shareholder sentiment split, November’s outcome will shape Tesla’s future and Musk’s legacy.