Tesla Inc (NASDAQ:TSLA) chairperson Robyn Denholm urged its shareholders for the second time in as many weeks to approve CEO Elon Musk's $1 trillion compensation package, saying failure to do so could result in Musk leaving the company.
"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, which have been essential to delivering extraordinary shareholder returns," Denholm wrote in a letter to shareholders on Monday.
Denholm sent a similar letter to Tesla shareholders last week, claiming Tesla could "lose significant value" if Musk left, as his leadership is needed to guide the company through its many businesses, which include robotics and energy storage.
In early September, Tesla revealed Musk’s proposed $1 trillion compensation deal, which would grant the company’s founder 12 large tranches of stock options tied to “aggressive” performance targets, which includes reaching a market cap of $8.5 trillion.
Independent proxy advisers Glass Lewis and ISS stated that shareholders should not approve the latest pay package, claiming the award was excessive, dilutive to shareholders, and not issued by an impartial board.
Musk called the proxy advisers “corporate terrorists."