Elon Musk’s $1 billion payment proposal is facing rejection from investors and state regulators
Tesla shareholders, including SOC Investment Group and various state authorities, asked investors to vote against Elon Musk‘s $1 trillion pay plan at the company’s November meeting. According to a regulatory filing released on Thursday.
In a letter to Tesla shareholders, the coalition, which includes Nevada, New Mexico, and Connecticut state treasurers. Urged investors to vote against the reelection of directors Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.
The group noted the board’s «relentless pursuit» of retaining Musk, claiming it has slowed progress on key targets set at the previous annual meeting. As well as worsening operational and financial performance and a «lack of meaningful real-time oversight of management.»
Despite reporting record quarterly deliveries on Thursday. Tesla is concerned that the expiration of the United States’ electric vehicle tax credit may slow the purchasing frenzy.
Last month, Tesla’s board of directors recommended a $1 trillion compensation plan for CEO Elon Musk, describing it as the highest corporate pay package in history. Setting lofty performance goals and attempting to address his desire for greater influence over the company.
New York City Comptroller Brad Lander, a longtime critic of Tesla’s board of directors and oversight of Elon Musk, is one of the state authorities who oppose the deal.
In response to Thursday’s letter, Tesla said in a post on X that the performance incentive plan aligns Musk’s compensation with the creation of “trillion-dollar” shareholder value.
“If Elon Musk doesn’t deliver results, he gets nothing,” the company said.
