Shareholders push back against Musk’s $1 trillion compensation plan
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A group of Tesla investors has written a letter asking other Tesla shareholders to vote against the new pay proposal at the company’s annual shareholder meeting on November 6. The proposal provides a new compensation package for CEO Elon Musk, which could be worth around $1 trillion.
As reported by Cryptopolitan, Tesla revealed the proposed $1 trillion pay package last month. However, for Musk to access the full payout, he needs to increase Tesla’s market capitalisation to $8.5 trillion over the next decade and achieve a series of significant product milestones.
These include boosting annual earnings to $400 billion a year, building a million Optimus robots, and delivering around 12 million EVs by 2035. This translates to an average of 1.2 million a year.
According to the Tesla board, “Tesla’s Special Committee designed a performance incentive plan that completely aligns Elon’s compensation & shareholder value creation. If Elon Musk doesn’t deliver results, he receives nothing […] “We’re talking about trillions of dollars of value for shareholders + efforts that will accelerate global prosperity.”
Tesla board members have personal ties with Musk
Signatories of the letter include Tesla investor SOC Investment Group, the American Federation of Teachers, and the state treasurers of Nevada, New Mexico, Connecticut, Massachusetts, Colorado, as well as the controllers of Maryland and New York City.
The shareholder group criticized Tesla’s board for not securing a commitment from Musk, who runs several companies, to “devote his attention” to Tesla. They war