Shareholders and compensation consultants weigh in on Elon Musk's $1 trillion pay package after Tesla meeting

Core Viewpoint - Elon Musk's proposed $1 trillion pay package as Tesla's CEO has been approved by 75% of shareholders, contingent on achieving ambitious performance metrics over the next decade [1][3][10]. Group 1: Compensation Package Details - The compensation package aims for Musk to increase Tesla's market cap to $8.5 trillion by 2035, sell 12 million vehicles annually, and deploy one million robotaxis and humanoid robots [3][10]. - For comparison, Nvidia's CEO is expected to receive approximately $49.9 million in pay in 2025, highlighting the scale of Musk's proposed compensation [2]. Group 2: Accountability and Governance - Experts note that such high-stakes pay packages are rare in publicly traded companies, and accountability is maintained as long as the compensation is linked to clear performance goals [3][7]. - The decision to approve the pay package was made by unaffiliated shareholders, indicating a level of support from those most affected by the arrangement [7]. Group 3: Controversies and Concerns - Some investors and watchdogs express concern that the pay package does not incentivize safety in autonomous vehicles, potentially leading to rushed deployments of partially-autonomous technology [11][12]. - Proxy advisory firms and significant institutional shareholders, including Norges Bank Investment Management, urged rejection of the pay package due to concerns over reliance on Musk [13][14]. - Tesla's marketing efforts to promote the pay package included ads urging shareholders to support Musk, raising questions about the independence of the voting process [12][14].