In November, Tesla shareholders will vote on a proposed 10-year, $1 trillion compensation package for CEO Elon Musk. Against this background, Tesla Chairman Robin Denholm accepted an interview with the New York Times to defend what is expected to be the largest compensation package in corporate history.
Denholm, who also sat on the special committee that drafted the pay package, believes Musk needs to be motivated by significant challenges tied to ultra-high compensation. At the same time, she said, Musk was less interested in the additional wealth represented by the Tesla shares in the pledge than in the voting rights that came with the shares.
“I think it’s a little strange to talk about how much the amount is when the core issue is clearly voting influence,” Denholm said. The New York Times said she "occasionally appeared uncomfortable" during the interview.
At a time when Tesla's profits and car sales are declining, it may seem unreasonable to launch such a huge compensation package at this time, but Denholm insists that the plan focuses on "future performance."
"It's not about past performance," she said. "If he doesn't hit the target, he doesn't get anything."
As the media has previously pointed out, the goals in this compensation package are far less ambitious than some of Musk's past promises to Tesla.