Here's how Tesla responded after shareholders were urged to reject Elon Musk's $1T pay package

Core Viewpoint - Tesla's proposed $1 trillion compensation package for CEO Elon Musk faces significant opposition, particularly from proxy adviser ISS, which has urged shareholders to reject the plan, marking the second consecutive year of such recommendations [1][2][5]. Group 1: Compensation Plan Details - The proposed compensation plan is described as potentially the largest corporate pay package in history, with ambitious performance targets that could still yield Musk tens of billions even with partial achievements [3][10]. - The plan includes market capitalization milestones up to $8.5 trillion and operational targets such as delivering 20 million vehicles and achieving $400 billion in adjusted core earnings [10]. - ISS has criticized the plan for its "astronomical" size and design features that could lead to high payouts for partial goal achievement, raising concerns about potential dilution for existing investors [7][11]. Group 2: Shareholder and Board Reactions - The ISS recommendation adds pressure on Tesla's board ahead of the upcoming shareholder meeting on November 6, renewing scrutiny of Musk's compensation following a Delaware court's previous voiding of his $56 billion pay package [2]. - Tesla's shares increased after the announcement of the compensation plan, as investors believe it would incentivize Musk to focus on the company's strategy [4][8]. - Tesla's board argues that retaining Musk is crucial for attracting and retaining talent, with Director Kathleen Wilson-Thompson emphasizing the importance of his leadership [6]. Group 3: Voting Power and Governance - Unlike the 2018 pay deal, Musk will be allowed to vote his shares this time, giving him approximately 13.5% of Tesla's voting power, which could be pivotal for securing approval of the compensation plan [6]. - Tesla has publicly criticized ISS's stance, suggesting that the adviser overlooks fundamental investment and governance principles, while reiterating a call for support of all proposals [9].