Outlook Business Desk
Tesla is preparing for a crucial shareholders vote next week on Elon Musk’s proposed $1 trillion pay package, which could reshape his future with the electric carmaker. Here’s what’s at stake and why it matters.
Tesla is considering appointing a new chief executive officer if Elon Musk steps down after the vote. Board chair Robyn Denholm said the company aims for an “orderly transition,” likely through an internal candidate.
Denholm confirmed that while internal leadership is preferred, Tesla is not ruling out external candidates. She added that the company’s bench strength ensures continuity if Musk’s proposed pay package fails to secure approval.
Musk’s compensation plan would give him a 25% stake in Tesla if he boosts its market value and achieves growth targets in cars, robotics, and robotaxi units — but he may leave if it’s rejected.
Robyn Denholm, after directly speaking with Musk, said there’s a high probability he may step down or focus on his other ventures — xAI, SpaceX, and more — if the proposal doesn’t pass.
Tesla is also urging retail investors, who hold 30% of its shares, to vote in favour of the plan. Board members, including Denholm and former Chipotle CFO Jack Hartun, and James Murdoch, are meeting major institutional investors to win backing.
Major proxy advisory firms ISS and Glass Lewis have advised against Musk’s pay package. Denholm noted that many passive investors follow such recommendations, so Tesla is directly engaging with them before the vote.
To rally support, Tesla showcased its Optimus humanoid robot outside Nasdaq in New York, distributing candies to onlookers — a symbolic move to highlight innovation and Musk’s importance to Tesla’s technological future.
If Musk’s proposal fails, Tesla has a backup plan. Denholm said leaders like Tom Zhu, global production chief and China head, are capable successors. She added that multiple leaders could share responsibilities if required.