Tesla investors urged to reject Elon Musks $1T pay package | Latest Tech News
Tesla’s proposed $1 trillion pay package for CEO Elon Musk got here under contemporary scrutiny on Friday, with proxy adviser ISS urging shareholders to reject what is perhaps the largest-ever compensation plan awarded to a company chief.
This is the second consecutive yr that Institutional Shareholder Services has urged investors to reject a compensation plan for Musk. Proxy advisers often sway major institutional investors, including the passive funds that maintain large stakes in Tesla.
The ISS advice provides stress on Tesla’s board forward of a intently watched Nov. 6 shareholder assembly and renews scrutiny of Musk’s compensation after a Delaware court earlier voided his $56 billion pay package.
This is the second consecutive yr that Institutional Shareholder Services has urged investors to reject a compensation plan for Elon Musk. AFP via Getty Images
Musk’s report Tesla pay plan might still hand him tens of billions of {dollars} even if he falls short of most of its bold targets, however, thanks to a construction that rewards partial achievement and hovering share costs.
Last month, Tesla’s board proposed a $1 trillion compensation plan for Musk in what it described as the most important company pay package in historical past, setting bold efficiency targets and aiming to tackle his push for higher control over the company.
ISS said that while the board’s purpose was to retain Musk because of his “track record and vision,” the 2025 pay package “locks in extraordinarily high pay opportunities over the next ten years” and “reduces the board’s ability to meaningfully adjust future pay levels.”
Tesla’s shares rose after the compensation plan was unveiled last month, as investors consider the pay package would incentivize Musk to focus on the company’s strategy.
Tesla’s shares rose after the compensation plan was unveiled last month, as investors consider the pay package would incentivize Musk to focus on the company’s strategy. AFP via Getty Images
“Many people come to Tesla to specifically work with Elon, so we recognize that retaining and incentivizing him will, in the long run, help us retain and recruit better talent,” Director Kathleen Wilson-Thompson said in a video posted to Tesla’s X deal with on Friday.
Watch Board Chair Robyn Denholm & Director Kathleen Wilson-Thompson – both members of Tesla’s Special Committee – talk about what shareholders need to know & why your vote issues, forward of our upcoming Annual Meeting on Nov 6 pic.twitter.com/ZWDW394d9N
— Tesla (@Tesla) October 17, 2025
Unlike the 2018 pay deal, Musk will probably be allowed to vote his shares this time, giving him about 13.5% of Tesla’s voting energy, according to a securities submitting last month. That stake alone might be enough to secure approval.
The proxy adviser cited the “astronomical” measurement of the proposed grant, design options that might ship very high payouts for partial purpose achievement and potential dilution for current investors.
The proxy adviser cited the “astronomical” measurement of the proposed grant, design options that might ship very high payouts for partial purpose achievement and potential dilution for current investors. REUTERS
ISS “once again completely misses fundamental points of investing and governance,” Tesla said in a separate post on X, while reiterating the call to vote for all proposals.
“It’s easy for ISS to tell others how to vote when they have nothing on the line,” Tesla said.
ISS valued the stock-based award at $104 billion, increased than Tesla’s own estimate of $87.8 billion.
The grant would vest only if Tesla reaches market capitalization milestones up to $8.5 trillion and operational targets including supply of 20 million autos, a million robotaxis and $400 billion in adjusted core earnings.
The proxy adviser’s steerage on Musk’s pay was half of a wider set of voting suggestions issued on Friday.
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