Tesla Shareholders Should Reject Musk’s $1 Trillion Pay Package, ISS Advises

Core Viewpoint - Tesla Inc. shareholders are being urged by proxy adviser Institutional Shareholder Services (ISS) to vote against CEO Elon Musk's $1 trillion compensation plan, marking the second consecutive year of such recommendations from ISS [1][2] Group 1: Compensation Plan Details - The compensation plan aims to retain Musk's focus on Tesla amidst his involvement in multiple companies, but ISS highlighted a lack of explicit requirements to ensure this focus [2][3] - The plan includes ambitious goals for Musk, such as increasing Tesla's market value to at least $8.5 trillion and expanding its car, robotics, and robotaxi businesses to unlock the full payout [3][5] - If the plan is approved, Musk's additional shares could increase his holdings in Tesla to at least 25% [4] Group 2: Shareholder Voting and Reactions - Shareholders will vote on the compensation package at Tesla's annual meeting scheduled for November 6 [5] - Tesla's board has pushed back against ISS's recommendations, arguing that ISS overlooks fundamental investment and governance principles [3][6] - Despite ISS and Glass Lewis recommending rejection of Musk's 2018 pay deal, approximately three-quarters of investors supported that package [6]