Core Viewpoint - Egan-Jones Proxy Services has partially supported Elon Musk's proposed $1 trillion Tesla pay package, recommending a vote for the 2025 CEO Performance Award under its "Wealth-Focus Policy," while advising against it under other frameworks focused on ESG and corporate accountability [1][2]. Group 1: Performance-Based Compensation - The pay package is entirely performance-based, requiring Tesla to achieve 12 operational milestones, including an $8.5 trillion market capitalization and $400 billion in adjusted earnings, to unlock the full $1 trillion [3]. - If Musk meets the specified milestones, he will receive nothing if he fails, and the potential stock value for Tesla shareholders could rise by approximately 800% over 10 years [4]. Group 2: Governance and Fairness Concerns - Egan-Jones raised significant governance and fairness risks under its other policies, highlighting the disparity between Musk's potential earnings and employee pay, which could lead to morale issues and long-term risks for Tesla's workforce and reputation [5][11]. - The firm noted that Musk's total ownership could increase to 28.8% if all targets are met, potentially diminishing other shareholders' influence on company decisions [6]. Group 3: Reactions from Tesla and Proxy Firms - Tesla has strongly contested the criticisms from proxy firms, labeling their analyses as "misguided" and asserting that they do not account for Tesla's unique business model [13]. - Tesla Chair Robyn Denholm urged shareholders to support the pay package, arguing it is an investment in future growth rather than dilution, and challenged investors to choose between traditional car company practices and Tesla's innovative approach [14][15][16].