Elon Musk could step down as Chief Executive Officer (CEO) of Tesla If his proposed $1 trillion pay package is not approved, according to a recent warning from Tesla Board Chair Robyn Denholm.

This urgent appeal was sent in a letter to shareholders of the electric car giant on Monday October 27, ahead of the November 6 annual meeting where investors are scheduled to vote on the massive, unprecedented pay proposal.

The warning comes as two major proxy advisory firms, Glass Lewis and Institutional Shareholders to vote against the proposed compensation.

Proxy advisers hold significant sway, particularly with large institutional and passive fund investors who own substantial stakes in Tesla.

The controversial pay plan is designed to retain and motivate Musk, encouraging him to lead Tesla for at least another seven and a half years, Denholm stated in her letter.

She emphasized that Musk’s leadership is “critical” to the company’s success, cautioning that without proper incentive, Tesla risk losing his time “time, talent and vision”.