Tesla Shareholders to Vote on Elon Musk Pay Package

Core Viewpoint - The proposed compensation package for Elon Musk is valued at $1 trillion, structured over ten years and contingent on achieving specific operational and financial milestones [1][4]. Operational Milestones - Musk must deliver 20 million vehicles, build 1 million robots, and scale the robotaxi service to 1 million cars [2]. Financial Targets - The financial targets include adjusted EBIT and market cap goals, with compensation tied to the achievement of these milestones [3]. Governance and Voting Power - The compensation package is all-or-nothing, with mandatory goals that must be met, raising concerns among investors about Musk's voting power and the board's reliance on him [4][5]. Key Man Risk - Institutional investors, including Norway's sovereign wealth fund and CalPERS, have expressed concerns about the "key man risk," emphasizing the over-reliance on Musk for the company's success [8][9]. Succession Planning - A significant change in the current package is the requirement for Musk to participate in a succession plan, which includes finding a successor by the end of the ten-year term [11][12]. Shareholder Proposals - A non-binding shareholder proposal is under consideration, which raises questions about Tesla's financial involvement in other ventures, particularly those that may not be profitable [16][17].