- Shareholder groups urge a vote against Elon Musk’s proposed $1 trillion pay package at Tesla’s upcoming annual meeting.
- Criticism targets Tesla’s board, with calls to vote against three director re-elections due to oversight concerns.
- The $1 trillion compensation plan would award up to 423.7 million shares to Musk, linked to company performance milestones.
- Opposition notes lagging targets from last year’s meeting and recent operational challenges as reasons for concern.
- Tesla says the plan aligns Musk’s pay with shareholder value, as demand risks rise following U.S. EV tax credit changes.
A coalition of Tesla shareholders is encouraging investors to reject CEO Elon Musk’s $1 trillion pay proposal at the company’s annual shareholder meeting scheduled for November. The group, which includes the SOC Investment Group and state treasurers from Nevada, New Mexico, and Connecticut, is also asking shareholders to oppose the re-election of directors Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.
In their letter to shareholders, the coalition criticized what it called the board’s “relentless pursuit” of retaining Musk. The group cited delays in hitting key goals, weakening operational and financial results, and what they described as a lack of meaningful oversight of management, according to a Reuters report.
Tesla’s board recently proposed what it described as the largest corporate pay package in history, which could award Musk up to 423.7 million shares across 10 years based on achieving targets related to profits, vehicle shipments, and projects like robotaxis and humanoid robots. If achieved, the plan could boost Musk’s voting power by about 12%. The proposal attempts to address Musk’s desire for greater control after a Delaware court earlier voided his $50 billion 2018 compensation deal, calling it excessive.
On X, Musk said the plan was not about personal gain but about ensuring influence over future Tesla projects, particularly with the company potentially building millions of robots. “If Elon Musk doesn’t deliver results, he receives nothing,” Tesla stated in response to shareholder concerns on X, maintaining that the plan is tied strictly to company performance.
The opposition emerges as Tesla reported record quarterly deliveries but faces uncertainty due to the expiration of U.S. electric vehicle (EV) tax credits, which could impact market demand. Despite these challenges, Tesla’s stock has increased nearly 8% in 2025. New York City Comptroller Brad Lander, a consistent critic of Tesla’s board oversight, also voiced his opposition to the proposed pay plan.
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