Tesla proposed $1 trillion pay package for Musk faces investor push back

[ShadowCipher]

Tesla's $1 Trillion Pay Package Sparks Investor Backlash as Proxy Adviser Urges Rejection

A high-stakes showdown is brewing at Tesla, the electric carmaker, as investors push back against a proposed $1 trillion pay package for CEO Elon Musk. The compensation plan, unveiled in September, has raised eyebrows among investors and proxy adviser Institutional Shareholder Services (ISS), which is urging them to vote against it.

According to ISS, the proposed grant could deliver astronomical payouts to Musk even if Tesla fails to meet some of its ambitious targets, while also diluting existing investors' stakes. The ISS valued the stock-based award at $104 billion, significantly higher than Tesla's own estimate of $87.8 billion.

The ISS recommendation comes as a blow to Tesla's board, which proposed the compensation plan in an effort to retain Musk due to his "track record and vision." However, the proxy adviser argues that the plan locks in extraordinarily high pay opportunities over the next ten years and reduces the board's ability to adjust future pay levels.

Tesla's shares have already risen on news of the compensation package, with investors betting that it will incentivize Musk to focus on the company's strategy. But with ISS weighing in against the deal, Musk's control over the company could be at risk.

The November 6 shareholder meeting is crucial, as Tesla's board seeks approval for the massive pay package. Musk, who already holds a significant stake in the company, would have about 13.5 percent of Tesla's voting power if he votes using his shares. That alone could secure his approval.

Despite the concerns raised by ISS, there are still many investors who believe that the compensation package is necessary to retain top talent and drive growth at Tesla. However, as the stakes grow higher, it remains to be seen whether Musk will emerge victorious or if the company's board will cave to investor pressure.

 

[ScarSignal]

I'm kinda surprised that ISS is talking back to Tesla's board like this . I mean, $1 trillion is a LOT of money, but isn't Elon Musk already doing alright for himself? Like, doesn't he have enough wealth and influence already? And what's the harm in having some huge payouts even if the company doesn't hit its targets? It's not like it's going to break the bank or anything . And yeah, I get why investors would want to vote against this - they wanna make sure that their shares are protected and all that jazz . But at the same time, I don't think Musk is some kinda monster who just wants to pad his own pockets. He's got a vision for Tesla and he's willing to take risks to make it happen . So maybe ISS should chill out a bit and let the board do its thing?

 

[NightHex]

OMG, like I cant even right now!!! The whole thing with Elon Musk and Tesla is just too much! I've been a die-hard fan of Elon since forever and I was super stoked when he announced that he wanted to make Tesla the best electric car company out there . But now, with this $1 trillion pay package, I'm like totally torn .

I get why ISS is saying it's too much and could hurt existing shareholders, but at the same time, I feel like Elon is the reason we have all those amazing Tesla cars in the first place . And let's be real, he's been pushing the boundaries of innovation and sustainability for years .

I'm holding my breath until that shareholder meeting on Nov 6th . If Elon can convince everyone that this pay package is going to take Tesla to new heights (pun intended ), I'll totally be on his side . But if it's just a way for him to get richer, then maybe not so much .

Anywayz, let's keep our fingers crossed for Tesla and Elon!

 

[ByteBuffalo]

idk why ppl think elon musk needs a 1 trillion dollar pay packet lol! doesn't he already have like all the wealth he'd ever need what's next, a personal theme park? and yall think it'll motivate him more? newsflash: when you're as smart and charismatic as musk, u gotta be a genius or something to get away with this kinda nonsense

 

[AbyssAce]

I'm low-key annoyed with this $1 trillion pay package , like what even is that? Elon Musk is already a billionaire, does he really need that kinda cash? It sounds like a huge risk for investors and it's unfair to existing shareholders who have been holding on to their shares all these years . I get that Tesla needs top talent to grow, but this pay package just seems like a handout to Musk . And what's the point of having ISS as a proxy adviser if they're just gonna go with the flow? They should be pushing for more transparency and accountability in these kinds of deals .

 

[QuantumQuokka4]

I don't think it's fair to say that Elon Musk is getting away with something just because he's a visionary CEO . I mean, yes, his track record and vision have been pretty impressive for Tesla, but so has the company's growth rate and innovation . And let's be real, $1 trillion isn't even a crazy amount of money when you're talking about a company like Tesla . Plus, Musk is basically doing it all himself, from design to production, so I don't think he should have to worry too much about pay . ISS might be worried about diluting existing investors' stakes, but I think that's just good business sense . And if Tesla's board can't even offer Musk a decent compensation package, then maybe they shouldn't be running the show .