Tesla Pushes for $1 Trillion Pay Package for Musk Amid Shareholder Dissent

Wed Nov 19 2025 10:17:14 GMT+0200 (Eastern European Standard Time)

As Tesla prepares for its annual general meeting, a controversial proposal to grant Elon Musk a $1 trillion pay package raises questions among shareholders about the company's direction and governance.

In an unprecedented move, Tesla is advocating for a $1 trillion pay package for Elon Musk, linking it to ambitious goals for the company's market value and the rollout of autonomous vehicles. However, dissent is brewing among shareholders and influential advisory firms, questioning the appropriateness of such compensation amidst Tesla's recent sales struggles and Musk's polarizing behavior. The upcoming AGM in Austin could become a crucial vote on Musk's leadership and the company's future.

Tesla Pushes for $1 Trillion Pay Package for Musk Amid Shareholder Dissent

Ahead of Tesla's annual general meeting (AGM) on Thursday, there's been one key message the electric car-maker has been hammering home to shareholders: the boss is worth $1 trillion.

Tesla has taken out digital ads to advocate for Elon Musk's proposed bumper pay package, while Votetesla.com features a video of board chair Robyn Denholm and director Kathleen Wilson-Thompson praising him, accompanied by triumphant music.

However, it’s unclear whether all stakeholders are in agreement, with the AGM in Austin, Texas set to become a referendum on Musk himself, amid a controversial political shift that has made him one of the most polarizing CEOs in history.

Musk has amplified support for the deal using X (formerly Twitter), asserting the fate of Tesla could affect the future of civilization. He has also highlighted high-profile supporters of the deal, which includes Dell Technologies' Michael Dell and Ark Invest CEO Cathie Wood.

Critics, however, argue that the focus on Musk's pay reflects a company that has lost its way under his leadership, evidenced by sliding sales. Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, raised eyebrows about why a struggling firm would promote a pay package instead of focusing on car sales.

The Trillion Dollar Man

The proposed deal does not outline a salary of one trillion dollars, but aims to link Musk’s compensation to raising Tesla's market value from $1.4 trillion to $8.5 trillion and getting one million self-driving Robotaxi cars operational.

If Musk meets those targets and others, he would earn nearly $1 trillion worth of new shares. This is not the first time Tesla and Musk have faced scrutiny over pay; past compensation packages have led to legal challenges due to perceived conflicts of interest among board members.

"The strategy is more of the same from Tesla," said Dorothy Lund, a professor at Columbia Law School. Proxy advisers such as Glass Lewis and Institutional Shareholder Services have recommended rejecting the pay package, adding significant pressure from large institutional investors like Norway's sovereign wealth fund and CalPERS.

A Polarising Figure

Tesla argues that losing Musk would be detrimental to the company's long-term mission and has voiced that he possesses unique leadership skills essential for the company's future.

Conversely, critics argue that the board's actions signify a failure to uphold their fiduciary responsibilities. As the AGM approaches, analysts are stressing the weight of this vote, which may determine Musk's future at Tesla. The backlash against Musk has been prevalent, fueling protests from opponents questioning his controversial political affiliations.

While some argue that his entrepreneurial prowess is unparalleled, whether Tesla shareholders will support a compensation package so extravagant remains uncertain.