Elon Musk's future at Tesla in balance as shareholders consider $1 trillion pay package

Core Viewpoint - Tesla shareholders are set to vote on Elon Musk's unprecedented $1 trillion pay package, which is tied to performance benchmarks, at the company's annual meeting in Texas [1][5]. Group 1: Pay Package Details - The proposed pay package includes performance targets such as achieving a $2 trillion valuation and delivering 20 million vehicles, as well as a $3 trillion valuation and 1 million "Optimus" humanoid robots [5]. - This pay package was introduced after a Delaware judge invalidated a previous $56 billion compensation plan for Musk, citing excessive compensation and conflicts of interest [4]. Group 2: Opposition and Concerns - Critics, including proxy advisory firms ISS and Glass Lewis, argue that the proposed salary is excessive and could dilute the holdings of other investors [2][8]. - Norges Bank Investment Management, overseeing Norway's sovereign wealth fund, expressed concerns about the total size of the award and the lack of mitigation of key person risk [7]. Group 3: Potential Consequences - Tesla chairwoman Robyn Denholm and Musk have indicated that he may leave the company if the proposal is rejected, which could impact Tesla's future and shareholder returns [2][9]. - Musk has emphasized the importance of the vote, suggesting that control of Tesla could significantly affect the future of civilization, particularly in relation to artificial intelligence and autonomous technology [3]. Group 4: Market Reactions - Tesla shares experienced a nearly 5% decline in trading prior to the vote, reflecting investor sentiment regarding the proposed pay package [7]. - Major investors like BlackRock, State Street, and Vanguard have not disclosed their voting intentions, adding to the uncertainty surrounding the outcome [11].