Elon Musk could leave Tesla if $56 billion pay package not approved

If the shareholders approve the package, it would make Elon the most highly compensated chief executive in modern history.

According to a media report, Tesla could be on the verge of losing its CEO, Elon Musk, if the company shareholders don't approve his massive $56 billion pay package.

The decision is said to take place on June 13th, when Tesla's shareholders will decide the fate of Musk's compensation, estimated to be worth $56 billion. Ahead of the meeting, Tesla Board Chair Robyn Denholm is calling on the company's shareholders to approve Musk's pay package and not risk driving the CEO away.

Denholm stated, "Elon is not a typical executive, and Tesla is not a typical company." He further added, "So, the typical way in which companies compensate key executives is not going to drive results for Tesla. Motivating someone like Elon requires something different."

The Tesla Board Chair went on to state, "What we recognized in 2018 and continue to recognize today is that one thing Elon most certainly does not have is unlimited time. Nor does he face any shortage of ideas and other places he can make an incredible difference in the world. We want those ideas, that energy and that time to be at Tesla, for the benefit of you, our owners. But that requires reciprocal respect."

Reports state that if the shareholders approve Musk's $56 billion package, it would make him the most highly compensated chief executive in modern history.

However, Denholm, implying that the large pay package would be a "motivation" for Elon to stay, speaks to the fear of some investors. Reports also suggest that with Musk now running different projects, including SpaceX, The Boring Company, Neuralink, X and xAI - it has taken away his attention from Tesla.

Source: TheVerge