Tesla Shareholders to Decide on Musk’s Trillion-Dollar Compensation Package
Tesla shareholders are set to vote on Thursday on a compensation package for CEO Elon Musk that could be worth up to $1 trillion if all performance targets are met. The proposal, the largest in corporate history, has drawn opposition from major institutional investors, including Norway’s $1.9 trillion sovereign wealth fund and California’s CalPERS pension fund, citing concerns over excessive size and dilution.
Musk, who currently holds a 13% stake in Tesla, can vote his 15% stake under Texas law, potentially tipping the scales in favor of approval. The vote comes amid scrutiny of three board members facing reelection, criticized for their own compensation packages.
Shareholders will also decide whether Tesla should invest in Musk’s AI venture, xAI, with advisory firm Glass Lewis recommending against the move. The outcome of these votes could significantly impact Tesla’s governance and strategic direction.
