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Robin Denhal, Tesla's board chair, recently appeared on CNBC to explain the company's position. She emphasized that Tesla is at a transformative juncture, heavily investing in artificial intelligence (AI), autonomous vehicles, and robotics. According to Denhal, this moment is pivotal for the company's future, necessitating exceptional leadership from Musk.
She highlighted that a special committee was formed specifically to craft a performance-based incentive plan that aligns Musk's motivations with shareholder interests. The plan is designed such that Musk earns no equity or salary unless he meets a series of ambitious operational and market cap milestones. This "pay for performance" structure aims to ensure that Musk's benefits are directly tied to tangible company achievements.