Elon Musk got feisty about his $1 trillion pay package in the final minutes of Tesla's earnings call

Core Points - Elon Musk's proposed $1 trillion pay package is at the center of controversy, with Musk emphasizing the need for sufficient voting power to influence Tesla's future in AI and robotics [1][2] - The compensation deal could increase Musk's stake in Tesla from 13% to nearly 29%, contingent on meeting ambitious performance targets [3] - The Tesla board has warned that rejection of the deal could lead to Musk reducing his involvement or leaving the company entirely [4] Compensation Package Details - The proposed package would reward Musk with up to $1 trillion in stock if he achieves specific performance milestones, including increasing Tesla's market value to $8.5 trillion and selling 12 million cars [3] - Operational milestones also include launching one million robotaxis and boosting adjusted earnings from $16.6 billion in 2024 to $400 billion [3] Shareholder Vote and Proxy Firms - Tesla executives are urging shareholders to support the upcoming vote on Musk's compensation proposal scheduled for November 6 [2] - Proxy advisory firms ISS and Glass Lewis have recommended voting against the pay package, which Musk has criticized as having undue influence over shareholder decisions [4][7] - Musk argues that these firms should be registered as investment advisors due to their significant impact on corporate governance [8] Historical Context - The controversy surrounding Musk's compensation began last year when a Delaware judge invalidated his 2018 compensation plan, previously valued at about $56 billion, citing undue influence from Musk on the board [10] - Tesla attempted to re-ratify the package through a shareholder vote, which was ultimately approved in June 2024 [11] Criticism and Concerns - Critics express concerns that the new pay package grants Musk excessive control with insufficient accountability, especially as he manages multiple ventures [12] - There are questions regarding whether Musk's focus on AI and humanoid robots may detract from Tesla's core electric vehicle business [12]