Mon Oct 27 16:15:04 UTC 2025: ## Tesla Board Warns: Musk May Leave if $1 Trillion Pay Package Fails
New York, NY – Tesla’s Board of Directors is making a desperate plea to shareholders, warning that CEO Elon Musk could leave the company if his proposed $1 trillion pay package is not approved. Board Chair Robyn Denholm made the stark assertion in a letter to shareholders ahead of the company’s annual meeting on November 6th, where the controversial compensation plan will be put to a vote.
The board argues that Musk’s continued leadership is “critical” for Tesla’s success, particularly as the company aims to become a leader in artificial intelligence and autonomous technology. The proposed performance-based plan, designed to retain Musk for at least seven and a half years, includes 12 tranches of stock options tied to ambitious targets, including a market capitalization of $8.5 trillion and milestones in autonomous driving and robotics.
Denholm’s letter frames the package as essential to aligning Musk’s incentives with shareholder value and long-term growth. She also urged investors to re-elect three long-serving directors who have worked closely with him.
However, the board’s appeal comes amidst growing scrutiny over its close relationship with Musk and concerns about its independence. Proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) have already urged shareholders to vote against the pay package, potentially swaying major institutional investors.
The decision follows a Delaware court ruling earlier this year that struck down Musk’s 2018 pay deal, citing a lack of independence amongst the directors involved in the negotiation.
Despite the controversy surrounding the pay package, Tesla’s stock is currently on the rise, up 3.1 percent at 11am in New York (15:00 GMT). The shareholder vote on November 6th will determine whether Tesla can retain its visionary CEO or face an uncertain future without his leadership.
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