Elon Musk's $1 trillion Tesla pay cheque tied to 'superhuman effort' and 'impossible goals'
Tesla’s proposed $1 trillion stock package for Elon Musk has been defended by chair Robyn Denholm, who described him as a “unique” chief executive that must put in superhuman effort and achieve “impossible things” to secure the historic award, the Financial Times reported.
In an interview with FT in Palo Alto, Denholm said: “In order to achieve the aspirational goals that we have put in place, he will have to put in time, energy and effort beyond what most humans can do.”
Last week, Tesla’s board proposed granting Musk 12 per cent of the electric-vehicle maker’s shares if over the next decade he can octuple its valuation to $8.5tn, boost earnings 24-fold and sell millions more cars and robots.
Achieving even half of these targets could make him the world’s first trillionaire, according to reports in Western media.
“This is definitely not a lay up. It’s a very ambitious plan . . . he earns the right to have an unprecedented award,” Denholm said.
Motivating Musk to “do impossible things”
Denholm also defended the board’s hands-off approach to Musk’s political views, emphasising his right to free speech and his qualities as a leader. “He’s a generational leader. We think that he actually has what it takes to deliver,” she said. “The board’s opportunity here is to motivate Elon to do impossible things.”
She argued that the pay package is not about money, but about ensuring Musk maintains control of Tesla only if he generates trillions in shareholder value. “He’s been very public about voting rights being important to him. I would say that money is not,” Denholm said. “It’s important to note that he could get nothing . . . zero compensation unless you perform against the milestones.”
Musk has threatened to leave if he does not secure at least 25 per cent of Tesla stock, saying he needs that level of control to ward off activists as the company builds artificial intelligence, self-driving cars and millions of humanoid robots. Denholm described that threat as real. “From my perspective that is a real possibility,” she said. “He has other interests in which he could generate significant advancements in humankind.”
Tesla board warns of consequences if Musk leaves
Tesla’s board has outlined what it sees as serious consequences should Musk walk away: losing his “singular talent” and vision, a potential exodus of senior staff, and a drop in the share price.
Still, Denholm rejected the notion that Tesla faces an “unsustainable” reliance on one person, even as critics have argued the board has little leverage in negotiating with its CEO.
Without Musk, she said, “there are activities in the company that would continue, but our view is the best way to optimise the future of Tesla is with Elon at the helm.”
The debate comes as Denholm herself faces scrutiny. A Delaware judge previously struck down Musk’s 2018 pay deal, criticising her “lackadaisical approach” to governance and describing the board as “supine servants of an overweening master.” Denholm dismissed those claims as “absolute BS” and “crap” in an earlier Financial Times interview.
Politics, protests and performance pressures
The latest proposal comes at a time when Musk’s politics have divided Tesla’s customer base. His role in government earlier this year triggered protests, with some Tesla dealerships picketed and cars vandalised.
“Protests in a democracy are expected, but violent protests, particularly when they’re directed at employees and customers, to me, that’s not cool,” Denholm said.
She added that Musk never disengaged from the company, even while spending time in Washington. “I don’t have to measure the number of hours that he’s working to see what he’s doing at the company,” Denholm said. “Quite frankly, he works extraordinary hours.”
Ahead of the shareholder vote on November 6, Tesla has said it received “assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”
Denholm would not say whether this would restrict his plans for a new political party or future public interventions.
“It’s exactly what it means. We spent a long time writing the proxy. The words were very carefully chosen and vetted and gone through 47 advisers. So they are the words that we chose,” she said.
Asked whether she has ever told Musk to rein in his social media posts, Denholm replied: “The board is very comfortable having tough conversations. I have conversations with Elon regularly. I can text him any time of the day . . . And he will answer me pretty quickly.”
But she drew a line at policing his every comment: “I don’t call him up about every single tweet that he makes. Free speech is one of his and the US’s important principles . . . At the end of the day he’s an individual. He has opinions. He’s free to share those opinions.”
In an interview with FT in Palo Alto, Denholm said: “In order to achieve the aspirational goals that we have put in place, he will have to put in time, energy and effort beyond what most humans can do.”
Last week, Tesla’s board proposed granting Musk 12 per cent of the electric-vehicle maker’s shares if over the next decade he can octuple its valuation to $8.5tn, boost earnings 24-fold and sell millions more cars and robots.
Achieving even half of these targets could make him the world’s first trillionaire, according to reports in Western media.
“This is definitely not a lay up. It’s a very ambitious plan . . . he earns the right to have an unprecedented award,” Denholm said.
Motivating Musk to “do impossible things”
Denholm also defended the board’s hands-off approach to Musk’s political views, emphasising his right to free speech and his qualities as a leader. “He’s a generational leader. We think that he actually has what it takes to deliver,” she said. “The board’s opportunity here is to motivate Elon to do impossible things.”
She argued that the pay package is not about money, but about ensuring Musk maintains control of Tesla only if he generates trillions in shareholder value. “He’s been very public about voting rights being important to him. I would say that money is not,” Denholm said. “It’s important to note that he could get nothing . . . zero compensation unless you perform against the milestones.”
Musk has threatened to leave if he does not secure at least 25 per cent of Tesla stock, saying he needs that level of control to ward off activists as the company builds artificial intelligence, self-driving cars and millions of humanoid robots. Denholm described that threat as real. “From my perspective that is a real possibility,” she said. “He has other interests in which he could generate significant advancements in humankind.”
Tesla board warns of consequences if Musk leaves
Tesla’s board has outlined what it sees as serious consequences should Musk walk away: losing his “singular talent” and vision, a potential exodus of senior staff, and a drop in the share price.
Still, Denholm rejected the notion that Tesla faces an “unsustainable” reliance on one person, even as critics have argued the board has little leverage in negotiating with its CEO.
Without Musk, she said, “there are activities in the company that would continue, but our view is the best way to optimise the future of Tesla is with Elon at the helm.”
The debate comes as Denholm herself faces scrutiny. A Delaware judge previously struck down Musk’s 2018 pay deal, criticising her “lackadaisical approach” to governance and describing the board as “supine servants of an overweening master.” Denholm dismissed those claims as “absolute BS” and “crap” in an earlier Financial Times interview.
Politics, protests and performance pressures
The latest proposal comes at a time when Musk’s politics have divided Tesla’s customer base. His role in government earlier this year triggered protests, with some Tesla dealerships picketed and cars vandalised.
“Protests in a democracy are expected, but violent protests, particularly when they’re directed at employees and customers, to me, that’s not cool,” Denholm said.
She added that Musk never disengaged from the company, even while spending time in Washington. “I don’t have to measure the number of hours that he’s working to see what he’s doing at the company,” Denholm said. “Quite frankly, he works extraordinary hours.”
Ahead of the shareholder vote on November 6, Tesla has said it received “assurances that Musk’s involvement with the political sphere would wind down in a timely manner.”
Denholm would not say whether this would restrict his plans for a new political party or future public interventions.
“It’s exactly what it means. We spent a long time writing the proxy. The words were very carefully chosen and vetted and gone through 47 advisers. So they are the words that we chose,” she said.
Asked whether she has ever told Musk to rein in his social media posts, Denholm replied: “The board is very comfortable having tough conversations. I have conversations with Elon regularly. I can text him any time of the day . . . And he will answer me pretty quickly.”
But she drew a line at policing his every comment: “I don’t call him up about every single tweet that he makes. Free speech is one of his and the US’s important principles . . . At the end of the day he’s an individual. He has opinions. He’s free to share those opinions.”
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