Economy

Tesla Shareholders Vote on CEO Elon Musk's Potential $1 Trillion Pay Plan

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Nov 6, 2025

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Tesla shareholders are voting on a new compensation package for CEO Elon Musk that could be valued at nearly $1 trillion over ten years. The results of the vote are expected to be announced on Thursday following the company's annual meeting. The proposed plan is contingent on Tesla meeting a series of ambitious performance-based milestones.

The package would significantly increase Musk's voting stake in the company from its current level of about 13% to over 25%. Tesla’s board and its chair, Robyn Denholm, have endorsed the plan. Denholm has argued that the package is critical to retaining Musk as the company pivots toward artificial intelligence and robotics, and warned that shareholders voting against it could risk Musk’s departure.

Key performance targets for the full payout include increasing Tesla’s market capitalization to $8.5 trillion and reaching 20 million vehicle deliveries. According to one summary, the plan also includes provisions for "covered events," such as pandemics or wars, that could permit share awards even if some operational targets are not met. This vote follows a Delaware court's decision last year to rescind Musk’s 2018 pay package.

Supporters, such as investor Ron Baron, contend that Musk's leadership is essential to the company's success. However, the proposal faces opposition from several major investors and advisory groups. Norway’s sovereign wealth fund stated it would vote no, citing concerns about the award's size. Proxy advisors Glass Lewis and ISS also recommended voting against the plan. Opponents have raised concerns about Musk being distracted by his other business ventures, with corporate governance expert Nell Minow reportedly describing him as a "part-time CEO."

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• Opponents argue the size of the potential compensation is excessive. Several major investors and advisory groups have voiced opposition due to the scale of the nearly $1 trillion package. As an example, Norway’s sovereign wealth fund has stated its intention to vote no, citing specific concerns about the award's size.

• Concerns have been raised about Musk's focus on his other business ventures. Critics have questioned the CEO's dedication to Tesla given his involvement with other companies. Corporate governance expert Nell Minow has reportedly described Musk as a "part-time CEO," highlighting concerns that he may be too distracted to fully lead the company.

• Major proxy advisory groups have recommended voting against the plan. The proposal has failed to gain the endorsement of influential shareholder advisory firms. Both Glass Lewis and ISS, which provide voting recommendations to institutional investors, have advised their clients to vote against the compensation package.

How it may affect me

As a U.S. reader:

• The vote's outcome could affect Tesla's stock value, which may impact the investments of individuals and retirement funds holding the company's shares.

• Approval of this pay plan could influence how other large U.S. companies structure their executive compensation, potentially setting a new precedent for CEO pay.

• The plan's goal of reaching 20 million vehicle deliveries, if met, could significantly increase the supply of electric vehicles and affect the U.S. auto market.

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