Tesla Weighs Internal CEO Options Amid Musk Pay Plan Vote

Potential Leadership Shift at Tesla

Tesla is reportedly evaluating internal candidates for the CEO position in the event that Elon Musk departs, according to Bloomberg News. The review comes as the company prepares for its annual shareholder meeting, where Musk’s proposed $1 trillion compensation package faces a critical vote.

Board Chair Advocates for Musk

Robyn Denholm, Tesla’s board chair, urged shareholders to approve the ambitious pay plan on Monday. Her goal is to retain Musk, the world’s wealthiest individual, as the driving force behind Tesla’s ongoing transformation toward self-driving technologies and humanoid robotics.

Musk’s Central Role in Tesla

This situation highlights Musk’s pivotal role in Tesla’s brand and investor confidence. Despite efforts to diversify leadership and reduce reliance on him, the company continues to be closely associated with its charismatic CEO. Tesla did not immediately respond to requests for comment from Reuters.

Details of the Proposed Compensation

The compensation package under consideration would award Musk 12 tranches of stock options tied to aggressive targets, including achieving an $8.5 trillion market capitalization and major milestones in autonomous driving and robotics.

Management Challenges

Recent departures of several senior executives have left Tesla with a relatively thin leadership bench. Currently, Chief Financial Officer Vaibhav Taneja and Senior Vice President of Automotive Tom Zhu stand out as the most prominent executives after Musk.

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Sorit Chaudhary

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