Tesla(US:TSLA) MINT·2025-11-06 16:56Core Viewpoint - Elon Musk may become the first CEO in history to receive a trillion-dollar pay package if Tesla shareholders approve the new policy, which Tesla argues will incentivize Musk to work harder [1][8]. Group 1: Shareholder Vote and Implications - Tesla shareholders are set to vote on a pay package that could increase Musk's stock holdings from over 12% to more than 25% [8]. - The outcome of the vote will be announced at Tesla's annual meeting in Austin, Texas, and Musk needs majority approval from voting shareholders to secure the shares [9]. Group 2: Company Value and Leadership - Tesla Chair Robin Denholm emphasized that without Musk, the company could lose significant value and may not achieve its vision of transforming mobility, energy, and labor [2]. - Musk has indicated that he might leave Tesla or reduce his involvement if his ownership stake does not increase sufficiently [5]. Group 3: Effectiveness of Financial Incentives - There is skepticism regarding the effectiveness of high pay as a motivator, with research suggesting that companies with higher CEO pay do not necessarily perform better in the long term [6]. - Studies indicate that firms paying their CEOs less than the average in their sector tend to perform better financially [6]. Group 4: Psychological Perspectives - Some psychologists argue that high-pressure situations, such as those created by significant financial incentives, can lead to performance anxiety or "choking" [7].