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].

Core Viewpoint - Rivian Automotive has revised CEO Robert Scaringe's compensation package to align with performance goals, similar to Tesla's approach with Elon Musk, potentially worth up to $4.6 billion over the next decade [1][2]. Compensation Structure - The new pay package includes options for 36.5 million shares at $15.22 each, an increase of approximately 16 million shares from the previous award [3]. - The vesting of these shares is contingent upon Rivian achieving share price targets between $40 and $140 over ten years, alongside new operating income and cash flow objectives through 2032 [3][6]. - The previous options tied to higher share prices ($110 to $295) were discarded due to low likelihood of achievement [3]. Strategic Intent - The revised compensation reflects Rivian's aim to retain its founder and drive growth and profitability, especially with the upcoming launch of the R2 SUV, which is designed to compete with Tesla's Model Y [4]. - Scaringe's annual salary has been doubled to $2 million to better align with shareholder returns, based on recommendations from independent consultants [4]. Additional Incentives - Scaringe has also received 1 million common units in Mind Robotics, a Rivian spin-off focused on industrial AI, which could grant him a potential 10% stake if profit targets are exceeded [5]. - He will serve as board chairman of Mind Robotics, with Rivian maintaining a stake in the venture [5]. Financial Implications - If all performance targets are met, the total payout could represent about a quarter of Rivian's current market value and slightly exceed its cash balance of $4.4 billion as of the end of September [6].

Core Viewpoint - The approval of Elon Musk's proposed $1 trillion pay package is crucial for Tesla, as it may determine his continued leadership and influence within the company [1][3]. Compensation Plan Details - The proposed pay plan, introduced in September, would grant Musk up to 12% of Tesla's stock, potentially worth $1 trillion if the company's market capitalization reaches $8.5 trillion and other operational milestones are met over a 10-year period [2]. - Tesla's current market valuation stands at approximately $1.45 trillion, with Musk owning about 13% of the outstanding shares [2]. Legal Context - The new compensation plan was introduced due to legal uncertainties surrounding Musk's previous $56 billion pay package from 2018, which was voided by a Delaware judge in January 2024 and is still under litigation [3]. Board's Warning - Tesla's board chair, Robyn Denholm, cautioned shareholders that failing to approve the pay package could result in Musk pursuing other ventures, which may lead to a loss of his leadership and vision for Tesla [3][6]. Shareholder Sentiment - Musk has actively urged shareholders to support the pay package, emphasizing the need for sufficient voting control while maintaining accountability [7]. - However, not all shareholders are in favor; Norway's sovereign wealth fund, Tesla's sixth-largest external investor, announced its intention to vote against the plan due to concerns over its size and potential dilution [10]. - Proxy advisory firms Glass Lewis and ISS have also recommended that shareholders reject the compensation package [11]. Historical Context - In the previous year, Tesla shareholders voted on reinstating Musk's $56 billion pay package from 2018, with approximately 77% in favor, although the package was valued at about $44 billion at that time due to stock price declines [12].

Norway’s sovereign wealth fund has voted against a Tesla proposal to give CEO Elon Musk a compensation package worth $1 trillion. The fund, which is managed by Norges Bank Investment Management (NBIM), holds a 1.14% stake in Tesla valued at about $11.7 billion, according to its mid-year filings in June. “While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk — consistent wi ...

Norway's sovereign wealth fund, one of Tesla's biggest investors, said Tuesday that it will vote against a proposed compensation package that could pay CEO Elon Musk as much as $1 trillion over a decade. There will be more than a dozen company proposals up for a vote Thursday during Tesla's annual meeting, but none have generated more division than Musk's potentially massive pay package. “While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total s ...

RT Sawyer Merritt (@SawyerMerritt)NEWS: The State Board of Administration of Florida, which owns $1.23 billion of $TSLA stock, says it is voting FOR Elon Musk's 2025 CEO Performance Award on Nov 6th."If the 2025 CEO performance award achieves its intended outcomes, it would mark one of the most remarkable examples of performance-based compensation driving shareowner value in modern corporate history. For shareowners, it would validate a bold governance strategy that aligns leadership incentives with long-te ...

Core Points - Tesla's CFO Vaibhav Taneja is advocating for shareholders to approve a $1 trillion pay package for CEO Elon Musk during the upcoming "say on pay" vote, emphasizing the special committee's efforts in creating a beneficial plan for shareholders [1][2] - The shareholder vote is scheduled for November 6 during Tesla's annual meeting, which will also address the reelection of three board members and the future direction of the company [2] - Taneja highlighted that substantial returns for shareholders are a prerequisite for any compensation to be realized, urging support for the board's recommendations [3] Industry Insights - It is uncommon for a CFO to publicly support a CEO's compensation plan during an earnings call, as this typically falls outside their responsibilities [4] - Observers note that the CFO's endorsement of the pay plan is unusual and raises questions about the appropriateness of such comments, given the potential conflict of interest [5] - The situation reflects broader concerns regarding corporate governance and the fiduciary duties owed to shareholders, particularly in light of the board's perceived alignment with Musk's demands [5]

Group 1 - Elon Musk's potential $1 trillion compensation plan proposed by Tesla's board would be the largest corporate pay package in history if approved [1] - The median pay for CEOs was reported at $206,420 annually as of May 2024, with median pay for all top executives at $105,350 [2] - The size and complexity of a company significantly influence executive compensation, with larger companies typically offering higher salaries and additional benefits [4][5] Group 2 - In 2024, CEOs at S&P 500 firms earned an average total compensation of $18.9 million annually, which is over 90 times higher than the typical CEO pay [6] - The average compensation breakdown for a typical S&P 500 CEO includes a salary of $1,265,452, bonuses of $3,918,737, and restricted stock valued at $8,968,909 [7] - The majority of wealth for the richest CEOs comes from bonuses, stock holdings, and other incentives rather than base salary [6]

Core Viewpoint - Institutional Shareholder Services (ISS) has recommended Tesla shareholders to oppose CEO Elon Musk's proposed $1 trillion performance award due to concerns regarding excessive compensation and governance risks [1] Summary by Relevant Categories Compensation Concerns - ISS highlighted the potential for excessive compensation associated with the proposed $1 trillion performance award for Elon Musk [1] Governance Risks - The advisory firm raised alarms about governance risks linked to the performance award proposal, suggesting it may not align with shareholder interests [1]

Core Viewpoint - A group of Tesla investors and state officials are urging shareholders to vote against CEO Elon Musk's proposed compensation package, which could be valued at approximately $1 trillion if ambitious goals are met over the next decade [1][2]. Group 1: Investor Concerns - The letter sent to Tesla shareholders criticizes the board for potentially harming the company's reputation in their pursuit of retaining Musk [2]. - Signatories of the letter include notable investors and state officials, who allege that the board is composed of directors with close ties to Musk, raising concerns about impartiality in decision-making [3]. - The letter highlights Tesla's "negative and highly volatile" operational and financial performance, including a decline in sales in key European markets [3]. Group 2: Board Oversight Issues - The letter questions the board's ability to provide objective oversight, citing personal and professional ties to Musk that may hinder their ability to challenge him [4]. - Investors argue that the board has allowed Musk to be overcommitted, taking on leadership roles in other companies, which they believe negatively impacts Tesla's performance [4]. Group 3: Compensation Package Details - The proposed compensation package for Musk includes an additional 12% stake in Tesla, contingent on meeting specific goals, with the market cap target set to increase from approximately $1.37 trillion to $8.5 trillion over ten years [7]. - Tesla's response to the criticism states that the proposed package aligns Musk's compensation with shareholder value creation, emphasizing that he will receive nothing if he does not deliver results [6][7]. Group 4: State Officials' Stance - New York State Comptroller Thomas P. DiNapoli announced that the New York State Common Retirement Fund will vote against the proposal, citing concerns over Musk's focus on the company amidst his other commitments [5].