**
In high-stakes corporate drama, Tesla board chair Robyn Denholm has warned shareholders that Elon Musk may exit as CEO if they reject his $56 billion compensation package. The controversial pay deal—voided by a Delaware court—faces a crucial re-vote at Tesla’s June 13 annual meeting.
Why Musk’s Pay Package Matters
The 2018 deal, the largest in corporate history, awarded Musk stock options only if Tesla hit extreme milestones like a $650B market cap. Musk claims he delivered, but critics argue the board failed to protect shareholders.
Key objections:
– A Delaware judge called governance “deeply flawed”
– Proxy advisors Glass Lewis recommends voting “no”
– Norway’s $1.6T wealth fund opposes the plan
Tesla’s Warning: Lose Musk, Risk Collapse
Denholm’s plea to investors frames Musk as irreplaceable:
“Elon is not a typical executive… If Tesla is to retain his vision, we must stand by our deal.”
Potential fallout if Musk departs:
– Stock crash: Tesla shares dropped 6% after the Delaware ruling
– Innovation delays: Robotaxi and AI projects could stall
– Investor exodus: Musk’s cult following drives Tesla’s premium valuation
Investors Are Split
Pro-Musk camp argues:
– He transformed Tesla into a trillion-dollar company
– Rivals like Ford and GM still trail in EV tech
– His attention is critical for AI and autonomous driving
Opponents counter:
– Musk already owns 13% ($75B in shares)
– He’s distracted by SpaceX, X, and xAI
– Sets a risky precedent for CEO pay
What Happens Next?
The June 13 vote could redefine CEO compensation. A “no” might push Musk to focus on his other ventures, while a “yes” could trigger copycat pay deals at tech firms.
**
