Pay package could make Musk the first trillionaire

Tesla shareholders have a limited time to vote on whether to approve a staggering pay package for Chief Executive Elon Musk that could award him nearly $1 trillion in shares.

- By CAROLINE PETROW-COHEN

MATT ROURKE Associated Press

ELON MUSK, shown in 2021, is Tesla's largest individual shareholder but wants more voting power.

Musk could leave the company if shareholders reject the package, board Chair Robyn Denholm warned in a letter to voters last week. The pay proposal is tied to ambitious performance goals and is necessary to incentivize Musk to continue his work, Denholm said.

Tesla will hold its annual meeting Thursday. Shareholders have until 11:59 p.m. Eastern time Wednesday to vote on the pay plan, which was unveiled by the board in September.

“If we fail to foster an environment that motivates Elon to achieve great things through an equitable payfor-performance plan, we run the risk that he gives up his executive position,” Denholm wrote in an Oct. 27 letter. “Tesla may lose his time, talent and vision, which have been essential to delivering extraordinary shareholder returns.”

Norges Bank Investment Management, which manages revenue from Norway’s natural resources and is one of Tesla’s biggest investors, said Tuesday that it will vote against Musk’s proposed pay. The fund holds a 116% stake in the company.