The titles of tesla rise more than 5% at noon in Wall Street after the president of the electric vehicle manufacturer, Robyn Denholmwill urge shareholders to approve the company’s $1 billion pay package Elon Musk ahead of the company’s annual meeting on Nov. 6.
Denholm argued that Tesla is at risk of losing Elon Musk as CEO if the salary package is not ratified.
The salary package was approved in 2018, but overturned by Delaware court earlier this year.
In addition, he emphasized that the leadership of its founder is essential for Tesla’s expansion in artificial intelligence, autonomous technology and robotics.
The letter from the Tesla president describes the package as necessary to align the Musk incentives with shareholder value and long-term growth, and also urges investors to re-elect three long-serving directors who have worked closely with him.
