Tesla Shareholders to Vote on Elon Musk Pay Package

Compensation Package & Governance - The proposed compensation package for Elon Musk is a 10-year plan, potentially worth $1 trillion, split into two tranches, contingent on operational and financial milestones [1] - Operational milestones include delivering 20 million vehicles, building 1 million robots, and scaling robotaxi service to 1 million cars [2] - Financial targets involve adjusted EBIT and market capitalization goals, with voting power tied proportionally to milestone achievement [3] - A key point of contention is voting power, particularly for institutional investors and advisory services recommending against the package [3][6] - The board views Musk as irreplaceable, stating he is the only person capable of achieving the set goals [5] - One mandatory requirement for later tranches is Musk's participation in a succession plan, including identifying a successor by year ten [11][12] Shareholder Concerns & Key Man Risk - Major shareholders like Norway's sovereign wealth fund (ninth largest) and CalPERS have voted against the package, citing key man risk [8] - These shareholders believe there is excessive reliance on a single individual, Elon Musk [9] - There are concerns about Tesla potentially funding Elon Musk's other ventures, such as X (formerly Twitter), particularly regarding capital expenditures for data center infrastructure [17] Market & Product Strategy - There is consideration of scrapping the electric version of Ford's F-150 truck [14]