Tesla&rsquo;s ambitious $1 trillion compensation proposal for CEO Elon Musk has hit resistance from Institutional Shareholder Services (ISS), a major proxy adviser, which has urged investors to vote against the plan ahead of the company&rsquo;s crucial November 6 shareholder meeting. The recommendation marks the second straight year ISS has opposed Musk&rsquo;s pay proposal, arguing the package&rsquo;s &ldquo;astronomical size&rdquo; risks excessive rewards even for partial achievement of targets.
The new plan, valued at over $100 billion, would be the largest corporate compensation deal in history. It ties Musk&rsquo;s potential earnings to Tesla reaching a staggering $8.5 trillion market cap and operational goals, including production of 20 million vehicles, one million robotaxis, and $400 billion in adjusted core earnings. Critics warn the plan could dilute existing shareholders&rsquo; stakes while giving Musk vast control over Tesla&rsquo;s future.
Tesla&rsquo;s board defended the move, saying the package is essential to retaining Musk&rsquo;s vision and leadership. &ldquo;Many people come to Tesla to specifically work with Elon, so retaining and incentivising him will help us retain and recruit better talent,&rdquo; board member Kathleen Wilson-Thompson said in a company video. Unlike his 2018 pay deal, Musk will this time be able to vote his 13.5% stake, a factor that could swing the decision in his favour.
ISS, however, cautioned that locking in such a long-term package &ldquo;reduces the board&rsquo;s ability to meaningfully adjust future pay levels.&rdquo; The vote outcome could shape Tesla&rsquo;s governance narrative at a time when Musk&rsquo;s role, investor influence, and executive accountability remain under global scrutiny.

Musk’s $1 Trillion Tesla Pay Plan Faces Pushback

Proxy adviser ISS urges Tesla investors to reject record $1T Musk pay package before vote

Musk’s $1 Trillion Tesla Pay Plan Faces Pushback

Proxy adviser ISS urges Tesla investors to reject record $1T Musk pay package before vote

October 18, 2025 | 16:43 IST