Musk Pay Deal About Performance and Goals, Chair Denholm Says

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00:00And what thus far has been the response been to this pay package that could see Elon paid as much

00:04as a trillion dollars? Well, thank you for having me today. Yes, as part of our annual shareholder

00:11meeting, I meet with the top investors in Tesla on the institutional side and obviously also talk

00:19to retail investors through forums like this this morning to encourage everybody to vote,

00:27but also to answer any questions that they have. From a board perspective, we really like to

00:33engage with our shareholders, understand their questions, their concerns, their optimism for

00:39the future. And so it's a really important part of the process we go through on a quarterly basis,

00:45but also with the proxy on an annual basis as well. So the initial feedback, is it one of optimism

00:53around the pay package? We've heard from Glass-Lewis, from ISS, which have said they're not in agreement

00:59with the way in which the pay package is thus formed. The key concern seems to be the sheer

01:04amount of money going to Elon Musk if indeed he achieves all of those key milestones. But for you,

01:10it's about, and for Elon, influence, it seems like. So how are you managing to discuss that with the

01:16investors, institutional and retail? Yeah. So firstly, it is a performance package. So he gets nothing.

01:23If he doesn't perform against the pretty audacious milestones that are part of the performance

01:30criteria that's been outlined by the board in the performance package. So I think rather than

01:38compensation, it's actually about the performance and the goals that we have for the company as we

01:43move forward. And so for me, it really is about making sure that investors understand that,

01:50that they actually get paid if he hits the milestone before he will. And, but to your point, it is about

01:58voting influence. Elon's been very public, including on last week's earnings call, about the fact that

02:04it's around the voting influence that he could have in future shareholder meetings, as opposed to the

02:13economic interests of the shares that he would get as part of the performance plan.