The entire fiasco behind Elon Musk's $56 billion Tesla pay package is now seeing an ultimatum, with the Tesla board chair claiming that the CEO will leave the company if he does not get it. In this latest message to shareholders, the board member reiterates how valuable Musk is to the company, and how this salary package is justified to his contributions to Tesla.
It is known that the Tesla shareholders initially voted against the $56 billion salary, but it will have another round of votes after a Delaware judge nullified the previous one.
Will Elon Musk Leave Tesla? Tesla Board Chair Claims
Tesla board chair, Robyn Denholm, addressed the company's shareholders in a new letter filed with the US Securities and Exchange Commission (SEC), claiming that this massive $56 billion salary fiasco may lead to driving away Elon Musk.
The board chair reiterated how valuable Musk is to the company, claiming that this 2018-approved salary package was a commitment to the CEO. In turn, Musk worked hard all these years and honored the approval, making wonders for its shareholders who saw 'tremendous value' in the company.
While it was not said by Denholm, it was implied that losing this '2018 Performance Award' may make Elon Musk think twice about his commitment and job at Tesla.
Elon Musk's $56 Billion Tesla Salary Fiasco
Denholm noted that there is an upcoming annual shareholders meeting coming soon and urges the owners to decide on approving the said $56 billion award, as well as approving Tesla's move to Texas as its legal home. Furthermore, the approval of both requests from Denholm would be the company's way of 'holding' its end of the bargain with Musk.
Elon Musk and Tesla
Elon Musk is known as one of the co-founders of Tesla, and he is among its longest-term executives in the company, with the renowned billionaire known for carrying the name to popularity. However, in recent times, Musk wants more of Tesla and asked for 25 percent control over the company, threatening to remove its AI and robotics leg if not given to him.
It is also known that Musk's current control and influence over the company is massive, with the recent changes to its operations seeing him revert his decision. Back in May, Tesla restructured the company, which led to removing as many as 500 employees on the Supercharger team, but after several weeks, he decided to rehire them as part of Tesla's $500 million plan for the network.
There have been ups and downs in Musk's leadership at Tesla, with him staying strong as its CEO until the present, and the only threat to his leadership was because of his previous actions before. Now, there is another threat to Musk's stay at Tesla, and it is the shareholders who would not approve his $56 billion salary, with the board chair claiming that he may depart if it is not approved.
