Elon Musk got feisty about his $1 trillion pay package in the final minutes of Tesla's earnings call - businessinsider.com
Original story by: Business Insider
Last updated: Oct 23, 2025
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- Context: Elon Musk has strongly criticized proxy advisory firms ISS and Glass Lewis, labeling them "corporate terrorists" for opposing his proposed $1 trillion pay package at Tesla. Musk argues that this compensation is crucial for him to maintain sufficient voting power to guide Tesla's future in AI, robotaxis, and humanoid robots.
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- Detailed Summary:
- Elon Musk referred to opponents of his $1 trillion Tesla pay package as "corporate terrorists," specifically naming proxy advisory firms ISS and Glass Lewis.
- Musk stated his primary concern is not just compensation, but retaining enough voting power to control Tesla's strategic direction in areas like AI and robotics. He expressed discomfort with being ousted due to recommendations from these proxy firms.
- He indicated a need for approximately "mid-20s" percent voting power to maintain significant influence while still being accountable.
- The proposed pay package is the largest in corporate history and is contingent on Musk meeting ambitious performance targets, including a $8.5 trillion market value for Tesla and achieving 12 operational milestones.
- These milestones involve selling millions of cars and humanoid robots, launching robotaxis, and significantly increasing adjusted earnings.
- If approved, Musk's stake in Tesla could increase from 13% to nearly 29%, granting him considerably more control.
- Tesla's board has warned that shareholder rejection could lead to Musk reducing his involvement or leaving the company.
- ISS and Glass Lewis have recommended against the pay package, while supporters like Cathie Wood expect it to pass.
- Musk criticized proxy firms for wielding outsize influence through index funds that outsource their voting decisions, asserting these firms lack ownership and often vote based on unrelated political lines.
- He also argued these firms should be registered as investment advisors.
- This controversy follows a Delaware judge's decision last year to strike down Musk's 2018 compensation plan, valued at $56 billion, citing undue influence by Musk on the board.
- Tesla shareholders later voted to approve this re-ratified pay package in June 2024.
- Critics raise concerns about Musk having excessive control and insufficient accountability, given his involvement in multiple ventures, and question potential distractions from Tesla's core electric vehicle business due to its AI and robot ventures.
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