Elon Musk capped Tesla’s latest earnings call with a tirade about his proposed $1 trillion pay package — and the people trying to block it.
The CEO said he doesn’t even want to call it “compensation,” insisting the real issue is whether he’ll have enough voting power to control Tesla’s next chapter in AI, robotaxis, and humanoid robots.
“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,” Musk said, calling the proxy advisory firms “corporate terrorists.”
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.”
Musk’s comments came as Tesla executives urged shareholders to support the November 6 vote on his compensation proposal, a package that would be the largest in corporate history.
The deal would award Musk up to $1 trillion in stock if he meets performance targets, including pushing Tesla’s market value to $8.5 trillion and meeting 12 “operational milestones.”
Those range from selling 12 million cars and one million humanoid robots to launching a million robotaxis and boosting adjusted earnings from $16.6 billion in 2024 to $400 billion.
Musk’s stake in Tesla could rise from 13% to nearly 29% if the new package passes, giving him significantly more control over the company.
The company’s board has warned that if shareholders reject the deal, Musk could reduce his involvement or even walk away entirely.
ISS and Glass Lewis have urged investors to vote against some or all of his proposed $1 trillion pay package. But supporters like Ark Invest’s Cathie Wood have said it will pass “decisively.”
Related stories
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
Shortly after the call, Musk took to X to blast proxy firms ISS and Glass Lewis, saying they wield outsize influence because major index funds “outsource their shareholder vote” to them, even though the firms “have no actual ownership” in the companies they weigh in on.
They “often vote along random political lines unrelated to shareholder interests,” Musk said.
He added that they should be registered as investment advisors, calling it absurd and arguably illegal that they’re not.
Musk did not respond to a request for comment from Business Insider.
The fight over Musk’s pay
The controversy over Musk’s pay didn’t start this quarter. It began last year, when a Delaware judge struck down his 2018 compensation plan — a deal then valued at about $56 billion — ruling that Tesla’s board had been unduly influenced by Musk when it approved it.
Tesla later sought to re-ratify the package through a shareholder vote, arguing it was fair and necessary to keep Musk focused on the car company. The company went all out to rally investors, including running ads and issuing letters to shareholders.
In June 2024, investors voted to approve Musk’s pay package.
Some critics argue that the plan hands Musk too much control and too little accountability as he juggles multiple ventures. Others have questioned whether his push into AI and humanoid robots distracts from Tesla’s core EV business.
