Robyn Denholm (Tesla Chair) says EV maker’s CEO could spend his time elsewhere if biggest pay deal ($56 billion) in US corporate history isn’t approved

The chair of Tesla (Robyn Denholm) has put forward his apprehension of Elon Musk stepping back from the EV makerin case shareholders do not back the CEO’s $56bn (£44bn) pay package, stating there are “other places” the entrepreneur could invest his time. Robyn Denholm further added that next week’s vote on the biggest compensation deal in US corporate history was “obviously not about the money” because Elon Musk would stay one of the richest people on the planet irrespective of the outcome. Denholm opined that Musk could step away from Tesla, or spend far less time at the company, if the 13 June vote went against him. Investors had approved Elon’s original $56bn (£44bn) pay deal in 2018 but it was eventually struck down by a judge in January, forcing the board to request them to ratify it again.

“What we recognised in 2018 and continue to recognise 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,” Denholm wrote. “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.” Musk’s other businesses include the artificial intelligence startupxAI, the rocket company SpaceX and X (the social media platform). Some Tesla investors have voiced concern about his ability to concentrate on Tesla. Musk’s conduct on X, where he has more than 186 million followers, has also annoyed one institutional investor in Tesla, Ross Gerber, who stated it has “absolutely damaged the [Tesla] brand”.

Denholm wrote in the 5^th June shareholder letter that the objective of the 2018 deal was to “keep Elon focused on Tesla and motivated to achieve the company’s incomparable ambitions”. “Upholding our end of the bargain, then, by ratifying the decision we all made in 2018, is more important than ever. If Tesla is to retain Elon’s attention and motivate him to continue to devote his time, energy, ambition and vision to deliver comparable results in the future, we must stand by our deal,” she wrote. Talking about Musk’s fortune, Denholm added: “This is obviously not about the money. We all know Elon is one of the wealthiest people on the planet, and he would remain so even if Tesla were to renege on the commitment we made in 2018.”