Tesla Motors shareholders are set to vote in November on a proposed 10-year compensation package for CEO Elon Musk valued at $1 trillion. Against this backdrop, Tesla board chair Robyn Denholm defended what could become the largest executive compensation package in corporate history during an interview.

Denholm, who also served on the special committee that crafted the compensation plan, believes that Musk requires significant challenges tied to extraordinary compensation to stay motivated. At the same time, she indicated that Musk has little interest in the additional wealth represented by the promised Tesla stock, focusing instead on the voting rights that come with the shares.

"I think it's somewhat strange that we're discussing monetary amounts when the core issue is clearly about voting influence," Denholm stated. During the interview, she appeared "occasionally uncomfortable."

While Tesla Motors is currently experiencing declining profits and vehicle sales, making such a massive compensation package seem counterintuitive, Denholm maintains that the plan focuses on "future performance."

"This has nothing to do with past performance," she explained. "If he fails to achieve the relevant targets, he won't receive a penny."

As previously noted, the targets within this compensation package are far less ambitious compared to some of the commitments Musk has made regarding Tesla in the past.