Tesla CEO Elon Musk's future at the company could be in jeopardy if shareholders do not approve his proposed $1 trillion compensation plan, the automaker's board chair, Robyn Denholm, warned in a letter to investors.
The letter comes ahead of Tesla's annual meeting on November 6, where the vote will take place.
"Do you want to retain Elon as Tesla's CEO and motivate him to drive Tesla to become the leading provider of autonomous solutions and the most valuable company in the world?" Denholm wrote.
She described the vote as "critical" for Tesla's future and for delivering significant shareholder returns, FoxBusiness reported.
The proposed pay package, unveiled in September, could make history as the largest executive compensation deal ever.
If approved, Musk could receive up to 12% of Tesla's stock, potentially worth around $1 trillion, contingent on Tesla hitting ambitious targets.
These include a market capitalization of $8.5 trillion and major milestones in autonomous driving, robotics, and energy initiatives over a 10-year period. Currently, Tesla's market value is slightly over $1.4 trillion.
Tesla risks losing Elon Musk as CEO if shareholders don't approve his massive $1T performance-based pay package—Board chair warns per CNBC: no deal, possibly no Musk.
— Comfortably Broke (@MrMakinMoves) October 27, 2025
Oddly, $TSLA stock jumps on the news, but what does this reaction really say? Are investors shrugging off the… pic.twitter.com/DKP64AwAkH
Elon Musk Pay Plan Could Secure CEO Role
Denholm emphasized that Musk's leadership is essential for Tesla to achieve its long-term goals.
"If we fail to foster an environment that motivates Elon to achieve great things through an equitable pay-for-performance plan, we run the risk that he gives up his executive position, and Tesla may lose his time, talent, and vision," she said.
The board chair noted that the package aligns Musk's interests with long-term shareholder value, encouraging innovation in products such as Full Self-Driving (FSD) technology and Tesla's robotics initiative, Optimus.
She also urged investors to re-elect three long-serving directors who have worked closely with Musk, countering criticism of the board's close ties to him.
Musk, meanwhile, has defended the package, arguing it is about maintaining influence over the company rather than personal wealth.
According to NewsBytes, during a recent investor call, he said, "It's not like I'm going to go spend the money," and criticized proxy advisory firms ISS and Glass Lewis for recommending shareholders reject the plan, labeling their guidance as "corporate terrorism."
The proposed plan, if approved, could secure Musk's role as Tesla CEO for another seven-and-a-half years, providing stability at the top of the company amid its ambitious growth plans.
Originally published on vcpost.com
