Tesla’s $1T CEO pay plan faces fresh pushback from ISS
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Tesla Inc. shareholders are being urged by proxy adviser Institutional Shareholder Services (ISS) to vote against Chief Executive Officer Elon Musk’s $1 trillion compensation plan, creating a potential hurdle as the board seeks investor backing.
This is the second consecutive year ISS has recommended that shareholders reject a pay package for Musk.
ISS flags concerns over Musk’s $1 trillion pay plan
Musk oversees an overlapping empire of five companies: Tesla, SpaceX, xAI, Neuralink, and the Boring Company. In its report, ISS highlighted concerns over the plan’s size and structure.
In the report, which was part of broader voting guidance it issued Friday, the proxy adviser noted that while one of the main reasons for this award is to retain Musk and push him to invest time on Tesla instead of his other business ventures, there are no explicit requirements to ensure that this will be the case. The proxy firm cited “unmitigated concerns” with the plan’s magnitude and design.
The EV maker pushed back in a post on X, urging shareholders to vote in line with the company’s recommendations, arguing that ISS misunderstood key principles of investing and governance and that it was easy for the proxy adviser to make voting recommendations without having any stake in the outcome.
Tesla defends compensation package ahead of crucial shareholder vote
The pay package, announced in Se