Tesla is prepared to appoint a new chief executive officer from within its ranks should shareholders reject Elon Musk’s proposed US$1 trillion pay package, prompting his potential departure. According to board chair Robyn Denholm, an internal candidate would be the most probable choice to ensure a smooth transition, though she did not exclude considering external candidates. This consideration comes ahead of a crucial shareholder vote next week regarding Musk’s compensation agreement.
The agreement would grant Musk a 25 per cent stake in Tesla if he substantially increases the company’s market value and achieves specific growth targets across its car, robotics, and robotaxi divisions. Musk has indicated he might reduce his involvement with Tesla or focus on his other ventures, such as xAI and SpaceX, if the pay package and greater voting control are not approved.
Denholm stated she has directly discussed the matter with Musk, conveying her belief that his disengagement or departure is highly probable if the compensation package is not approved. These statements were part of a broader effort involving media interviews and investor meetings aimed at garnering support for the unprecedented pay agreement, which is scheduled for a vote at the company’s annual meeting on November 6. Tesla is an electric vehicle and clean energy company.
