Investors and Officials Challenge Elon Musk’s $1 Trillion Pay

FILE PHOTO: Elon Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022.

A coalition of Tesla shareholders, including SOC Investment Group and several state officials, has urged investors to vote against Elon Musk’s $1 trillion pay package at the company’s November meeting, according to a regulatory filing.

The group, which also includes state treasurers from Nevada, New Mexico, and Connecticut, called for opposition to the re-election of directors Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson. They criticized the board’s “relentless pursuit” to retain Musk, citing delays on key goals, declining operational and financial performance, and a “failure to provide meaningful real-time oversight of management.”

Tesla recently reported record quarterly deliveries but faces concerns that the expiration of the US EV tax credit could slow sales. Last month, the company proposed what it called the largest corporate pay package in history, setting ambitious performance targets and seeking to align Musk’s compensation with shareholder value.

Among those opposing the plan is New York City Comptroller Brad Lander, a longtime critic of Tesla’s board and oversight of Musk. While the city’s pension funds are not major shareholders, Lander has frequently been involved in campaigns for corporate governance reform.

Tesla responded on X, saying the performance incentive plan ties Musk’s pay to shareholder value creation “of trillions of dollars” and that “if Elon Musk doesn’t deliver results, he receives nothing.”