Elon Musk Pay Package Vote: What's at Stake for Tesla?

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]. Voting Power and Investor Concerns - A significant point of contention among investors is Musk's voting power, which is linked to the compensation structure, leading to a divide between the board's support for Musk and institutional investors advocating for a no vote [5][6]. Key Man Risk - Major shareholders, including Norway's sovereign wealth fund and CalPERS, have expressed concerns over the reliance on Musk, highlighting the key man risk associated with his leadership [8][9]. Succession Planning - A new requirement in the compensation package mandates Musk to participate in a succession plan, which includes finding a successor by the end of the ten-year period [11][12]. Shareholder Proposals - A non-binding shareholder proposal is under consideration, focusing on the financial implications of Tesla's involvement with other Musk ventures, particularly regarding capital expenditures and potential cash burn [16][17].