Elon Musk ended Tesla’s quarterly earnings call with strong words, defending his proposed $1 trillion pay package and attacking proxy advisory firms that opposed it. He labeled ISS and Glass Lewis as “corporate terrorists,” accusing them of disrupting shareholder decisions without real ownership stakes.
Musk said he does not view the proposal as mere compensation. Instead, he sees it as essential to maintaining his voting control at Tesla, which he claimed must stay around 25% to keep “a strong influence” while still allowing the board to remove him if necessary.
The Tesla board has scheduled a shareholder vote on November 6, urging investors to support the package. If approved, Musk could receive up to $1 trillion in stock, making it the largest corporate compensation plan in history. The targets include reaching an $8.5 trillion market value, selling 12 million cars, producing one million humanoid robots, and launching a million robotaxis.
If the proposal passes, Musk’s stake in Tesla could rise from 13% to nearly 29%, tightening his control over the company. The board warned that rejection might cause Musk to reduce his involvement or even leave Tesla.
After the call, Musk posted on X (formerly Twitter), criticizing proxy firms for “voting along random political lines” and called for their registration as investment advisers.
The debate over Musk’s pay began when a Delaware court invalidated his 2018 $56 billion plan, ruling that Tesla’s board had been too influenced by him. Tesla later sought reapproval, and shareholders voted in June 2024 to back the revised plan.
Critics say the massive payout gives Musk too much control and could distract him from Tesla’s core electric vehicle business. Supporters, including Ron Baron and Cathie Wood, argue that Musk’s leadership and vision justify the rewards.
“Without his relentless drive, there would be no Tesla,” Baron said.
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