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Elon Musk talked about his $1 trillion pay package at the end of Tesla's earnings call Tesla CEO Elon Musk on Wednesday criticised two shareholder advisory firms that opposed his proposed $1 trillion compensation package, calling them “corporate terrorists” during an earnings call. The remarks came after one of the firms expressed “unmitigated concerns” about the controversial pay plan. Musk talked about his $1 trillion pay package at the end of Tesla's earnings call. He defended his compensation proposal and slammed proxy firms for opposing it, reports Bloomberg. He said he needs about "mid-20s" percent voting power to maintain "a strong influence" at Tesla.“I just think that there needs to be enough voting control to give a strong influence,” Musk said, interrupting his CFO at the tail end of a 75-minute call. “But not so much that I can’t be fired if I go insane.”ALSO READ: White House East Wing to be demolished within days: Trump announces staggering cost for ballroom projectElon Musk on $1 trillion pay packageIn his comments, Musk said that recommendations from advisory firms Glass Lewis and Institutional Shareholder Services to vote against his pay package were “asinine.” Musk said the firms have “made many terrible recommendations in the past” that, if followed, would have been “extremely destructive” to Tesla’s future.Live Events“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,” Musk said, referring to the proxy advisory services who he said aren’t voting in shareholders’ interests. He said he needs about "mid-20s" percent voting power to maintain "a strong influence" at Tesla, but still be fireable if he goes "insane."ALSO READ: Interstellar comet 3I/ATLAS surprises astronomers again: Mysterious cosmic visitor extends strange tendril toward the SunElon Musk’s remarks come as Tesla executives push shareholders to back his proposed compensation plan in the upcoming November 6 vote. The proposal, potentially the largest in corporate history, could award Musk up to $1 trillion in stock if he achieves ambitious performance targets—such as driving Tesla’s market valuation to $8.5 trillion and completing 12 defined “operational milestones.”Tesla CFO Vaibhav Taneja, in his closing remarks during the earnings call, emphasized that the board committee behind the proposed compensation package structured it to ensure that CEO Elon Musk would receive no benefits unless shareholders see significant returns. Taneja repeatedly urged investors to support the plan.At present, Elon Musk’s net worth stands at $487.5 billion, making him the world’s wealthiest person, ahead of Oracle founder Larry Ellison ($331 billion) and Meta founder Mark Zuckerberg ($251.2 billion). Elon Musk’s stake in Tesla could soar from 13% to nearly 29% if the company’s proposed compensation package is approved, giving the billionaire significantly greater influence over the automaker. Tesla’s board has cautioned that a shareholder rejection could prompt Musk to scale back his involvement—or even step away from the company entirely.ALSO READ: Who is Jashanpreet Singh? Driver behind Ontario 101 freeway crash arrested in US faces backlash and calls for deportationThe fight over Musk's $1 trillion pay packageThe debate over Musk’s pay is not new. It traces back to last year, when a Delaware judge invalidated his 2018 compensation plan, then valued at roughly $56 billion, ruling that Tesla’s board had been unduly swayed by Musk in approving the deal.Tesla later sought to reauthorize the package through a shareholder vote, arguing it was fair and essential to keep Musk focused on the electric vehicle giant. The company mounted an extensive campaign to secure investor approval, including advertisements and letters to shareholders. In June 2024, the pay plan was ultimately approved by investors.ALSO READ: Jashanpreet Singh, driver suspected of DUI in Ontario freeway crash that killed three, arrested. Is he a US citizen?Critics, however, contend the arrangement gives Musk excessive control with limited accountability, especially as he pursues multiple ventures simultaneously. Concerns have also been raised that his focus on AI and humanoid robots could distract from Tesla’s core electric vehicle business.(With inputs from Bloomberg)Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onElon Muskelon musk teslaTeslaelon musk $1 trillion compensation packageelon musk pay packageelon musk tesla earnings callelon musk newselon musk latest newselon musk salaryelon musk tesla shares (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onElon Muskelon musk teslaTeslaelon musk $1 trillion compensation packageelon musk pay packageelon musk tesla earnings callelon musk newselon musk latest newselon musk salaryelon musk tesla shares(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless Explore More Stories123
