Compensation Package

Tesla shareholders approved a substantial compensation package for CEO Elon Musk, potentially worth $1 trillion in stock over the next decade. While approved, support decreased slightly compared to a similar 2018 plan. Excluding insider holdings, roughly 66.9% of shares voted for the plan, down from 73% previously. Concerns included slower sales growth, Musk’s political views, and increased competition. Despite these factors, investors see Musk as crucial to Tesla’s success and were unwilling to risk his departure. The plan’s size and milestones attracted criticism from proxy advisory firms.

Tesla shareholders approved Elon Musk’s compensation package, potentially worth nearly $1 trillion, awarding stock options tied to ambitious performance goals, including market capitalization and profitability targets. The vote also addressed Tesla’s potential investment in xAI, but next steps are under deliberation. Despite opposition from advisory firms, the board actively campaigned for approval, emphasizing Musk’s crucial role. The plan lacks restrictions on Musk’s political activities or time commitment to Tesla, despite ongoing debate regarding his controversial statements on sales. A Delaware court ruling on a previous pay package adds further complexity.

Tesla’s Board Chair urges shareholders to approve Elon Musk’s $1T compensation package, citing his vital role in the company’s future, particularly AI and robotics. The board argues that rejecting the package could devalue Tesla. ISS recommends against it, and the “Take Back Tesla” campaign raises ESG concerns. The vote includes board re-elections. The decision hinges on Musk’s continued vision and influence versus concerns over excessive compensation and potential brand damage. Increased voting power for Musk is also under consideration.

ISS recommends Tesla shareholders vote against Elon Musk’s proposed compensation package, a “mega performance equity award” valued near $1 trillion but raising concerns about its magnitude and alignment with long-term shareholder interests. Tesla’s board defends the package as crucial for retaining Musk and incentivizing growth. The firm also suggests voting against investing in xAI and reinstating a board member due to governance concerns. Musk, owning a substantial stake, could still secure approval despite the recommendations. The vote is pivotal for Tesla’s future leadership and governance.

Tesla’s CEO Elon Musk could receive a $30 billion stock grant, reigniting debate about his compensation. A Tesla engineer, Tsai, defended the award on X, noting Musk’s eight years without a salary, consistent work attendance, and leadership through crucial milestones. Tsai also humorously pointed out that his own salary once surpassed Musk’s. He emphasized Musk’s passion and commitment as a team motivator, hoping he receives his first paycheck after years of dedication. The stock package aims to align Musk’s interests with long-term shareholder value and ambitious growth targets.

Tesla has filed paperwork revealing a potential $29 billion stock option package for CEO Elon Musk. This “interim award” aims to secure Musk’s leadership as Tesla shifts towards autonomous vehicles and robotics. The move follows a Delaware court’s rescission of Musk’s 2018 compensation plan, now under appeal. The new grant, structured to avoid double compensation, would increase Musk’s stake in Tesla if the Delaware ruling stands and he remains an executive for two years. Analysts view it as a signal of confidence in Musk’s ability to guide Tesla’s strategic evolution.