Tesla Shareholders Vote on Musk’s $1 Trillion Pay Package Today

URGENT UPDATE: Tesla shareholders are set to cast a pivotal vote today in Austin, Texas, regarding a stunning pay package for CEO Elon Musk that could reach an astonishing $1 trillion. This unprecedented compensation plan aims to keep Musk at the helm of the electric vehicle giant, ensuring his vision for the company remains intact.

Shareholders are expected to approve this record-breaking package during a critical vote, which could dramatically reshape Musk’s influence over the company he founded. If approved, Musk’s stake in Tesla would surge from approximately 15% to 25%, solidifying his position as the controlling force behind Tesla’s ambitious plans.

The proposed milestones for Musk’s compensation are as ambitious as the figure itself. Over the next decade, he must lead Tesla to a market capitalization of $8.5 trillion, a huge leap from its current valuation of around $1.5 trillion. Other benchmarks include achieving an adjusted EBITDA of $400 billion and rolling out 20 million cars, along with one million robotaxis and humanoid robots, known as Optimus.

According to board chair Robyn Denholm, this vote represents an “inflection point” for Tesla. She warned that failure to pass the package could push Musk to leave or undermine his motivation to drive Tesla towards greatness, potentially costing the company invaluable growth.

“If we build this robot army, do I have at least a strong influence over that robot army?” Musk asked during Tesla’s latest earnings call, emphasizing his need for control.

Longtime Tesla supporter Dan Ives echoed the sentiment, asserting that Musk is the company’s “biggest asset” and highlighting the urgency of the vote amidst the ongoing “AI Revolution.” However, critics are not silent. Norway’s $1.6 trillion wealth fund, Tesla’s ninth-largest shareholder, has publicly opposed the pay plan, deeming it “excessive in size” and “overly dilutive.” Proxy advisers like ISS and Glass Lewis have raised alarms that it could transfer “an unprecedented amount of wealth” without sufficient checks.

The governance community, including CalPERS and New York State’s pension fund, has rallied against the proposal, arguing it would further concentrate power in Musk’s hands. CalPERS criticized the plan for dwarfing pay packages of comparable CEOs by “many orders of magnitude.”

Counterarguments from supporters emphasize the necessity of Musk’s leadership for Tesla’s innovative trajectory. Despite the criticism, Tesla’s board has largely aligned with Musk, raising concerns about the company’s governance practices. Under new bylaws established after a Delaware court ruling deemed a prior pay package “deeply flawed,” challenges to this new plan may face significant hurdles.

As the clock ticks towards today’s vote, the stakes are high. If the pay package passes, it not only confirms Musk’s future at Tesla but also sets a precedent for CEO compensation in Silicon Valley and beyond. The world will be watching closely, as this decision will determine whether Musk retains the reins of power at Tesla and what direction the company will take in its quest for dominance in the evolving landscape of autonomous technology.

Stay tuned for live updates as the vote unfolds. What happens next could redefine the relationship between Tesla’s leadership and its shareholders, impacting the future of electric vehicles and AI technology.