With $1 trillion pay package on the line, Elon Musk blasts influential firms telling shareholders to reject it: ‘Those guys are corporate terrorists’

Core Viewpoint - Elon Musk criticized proxy advisory firms ISS and Glass Lewis, labeling them as "corporate terrorists" for their recommendations against his $1 trillion pay package, which he argues undermines his leadership at Tesla [1][2]. Group 1: Musk's Criticism of Advisory Firms - Musk expressed discomfort with the influence of proxy advisory firms, stating they lack understanding and have excessive sway over shareholder decisions, particularly affecting passive investors like index funds [2][3]. - He argued that these firms do not have actual ownership and often vote based on political lines rather than shareholder interests, which he sees as a significant issue beyond just Tesla [3]. Group 2: Pay Package Details - The proposed pay package for Musk could amount to approximately $1 trillion over 10 years, contingent on meeting performance metrics, including increasing Tesla's market cap by over 500% to $8.5 trillion [6]. - ISS and Glass Lewis raised concerns about the size of Musk's pay package and its potential to dilute existing shareholders' holdings [7]. Group 3: Advisory Firms' Role - Advisory firms like ISS and Glass Lewis do not vote directly in shareholder meetings but provide recommendations that are analyzed by major institutional investors such as BlackRock, Vanguard, and State Street [4]. - A spokesperson for Glass Lewis emphasized that their role is to provide analysis and recommendations, leaving the final decision to Tesla shareholders [5].