Elon Musk's $1 trillion pay deal draws ire of labor unions, others as shareholder vote nears

Core Viewpoint - Tesla is facing a significant challenge from critics who aim to block a proposed CEO compensation package for Elon Musk, potentially worth $1 trillion, which is likely the largest-ever CEO compensation agreement [1] Group 1: Compensation Package Details - Investors will vote on November 6 regarding the approval of Musk's pay package [1] - Tesla's board, led by Chair Robyn Denholm, is advocating for the approval, warning that Musk may leave if the deal is rejected [1] Group 2: Opposition and Governance Concerns - Critics, including Democratic state leaders and union officials, have initiated a campaign to reject the compensation offer and aim to vote out three Tesla directors up for reelection [2] - Skeptics argue that the proposed compensation is not performance-based but rather a means to consolidate Musk's power, with concerns about a return to "the era of robber barons" [3][4] Group 3: Shareholder Sentiment and Proxy Advisers - Some investors, including those managing state pension funds, express that the deal undermines shareholder influence in the company [5] - Despite recommendations from top proxy advisers to vote against the pay package, critics acknowledge the difficulty of their campaign due to shifting political dynamics favoring corporate leaders [5] Group 4: Broader Implications for Investors - Investors may be inclined to support Musk to maintain favorable relations for potential investments in his other ventures, such as xAI or SpaceX [6]