Elon Musk Makes Urgent Plea for $1 Trillion Tesla Pay Package
Elon Musk made a surprise intervention during Tesla’s earnings call, directly pleading with investors to approve his massive $1 trillion compensation package while sharply criticizing shareholder advisory firms opposing the deal.
Key Takeaways
- Musk seeks investor approval for $1 trillion compensation package
- Shareholder vote scheduled for November 6
- ISS and Glass Lewis recommend rejecting the proposal
- Musk expressed concerns about losing control while developing AI and robotics
Earnings Call Intervention
During what was largely a routine discussion about Tesla’s artificial intelligence, humanoid robots, and self-driving initiatives, Musk hijacked the conversation toward the end to address his compensation package directly.
“There needs to be enough voting control to give a strong influence, but not so much that I can’t be fired if I go insane,” Musk stated, interrupting the chief financial officer during the hour-long call.
Disappointing Financial Results
Tesla’s Q2 earnings report revealed significant challenges, with profits missing estimates despite record vehicle deliveries. Operating income plunged 40% in the third quarter, reflecting ongoing strains on the electric vehicle business amid changing US policies.
Costs rose sharply, with tariffs taking a $400 million toll on last quarter’s results. Operating expenses soared 50% to $3.4 billion during the period.
Shareholder Advisory Opposition
Proxy advisers Institutional Shareholder Services and Glass Lewis have both recommended investors reject Musk’s unprecedented payout. ISS cited “unmitigated concerns” with the award’s magnitude and design, while Glass Lewis highlighted potential dilution of other shareholders’ ownership.
Musk emphasized that voting control matters more to him than monetary compensation, stating: “I just don’t feel comfortable building a robot army here, and then being ousted because of some asinine recommendations from ISS and Glass Lewis, who have no freaking clue.”
Board Support
After Musk concluded his remarks, Tesla CFO Vaibhav Taneja praised the “amazing job” done by the special board committee in constructing the award.
“There’s nothing which gets passed on until the time shareholders make substantial returns,” Taneja said, repeatedly urging shareholders to vote in favor of the plan.
Musk, 54, currently ranks as the world’s richest person with a net worth of approximately $455 billion according to the Bloomberg Billionaires Index.
