Elon Musk’s $1 Trillion Pay Plan Is Under Fire — And Tesla’s Biggest Investors Are Being Told to Vote “No”
It’s the biggest CEO payday in history — and it just got a major thumbs down.
One of the most influential voices on Wall Street, Institutional Shareholder Services (ISS), has officially recommended that Tesla investors reject Elon Musk’s jaw-dropping $1 trillion pay package at the upcoming shareholder meeting on November 5.
Yes, you read that right: one trillion dollars.
What’s in the Deal? The Most Extreme CEO Compensation Plan Ever
Musk’s proposed pay plan isn’t your average salary and stock combo.
It’s a “mega performance equity award”, designed to reward him only if he achieves absolutely massive goals — including driving Tesla to a market cap of $8.5 trillion.
If the stars align, Musk could walk away with an extra 12% stake in Tesla, turning him into possibly the richest individual in human history… by far.
But ISS isn’t buying the hype.
“Astronomical Grant Value” — ISS Slams the Plan
In its formal statement, ISS said the plan:
- Has an “astronomical grant value”
- Is based on “far-reaching performance targets”
- Presents “unmitigated concerns” around its size and structure
In plain English? They think it’s way too much money, even if Musk hits the company’s ambitious goals.
The report warns that shareholders should think twice before greenlighting such an extreme payout — especially when it could drastically reshape Tesla’s ownership and governance.
Tesla Fires Back: “You Don’t Get It”
Tesla didn’t take the criticism lightly.
In a fiery post on X (formerly Twitter) — which Elon Musk owns — the company hit back at ISS, accusing them of misunderstanding investing, governance, and shareholder value.
“Elon receives nothing unless shareholders win big,” the company wrote.
“ISS has now recommended against compensation that shareholders have already voted for — and that Elon has already earned.”
Tesla argues the pay plan is fair, because it’s 100% performance-based. If Musk doesn’t deliver on growth, he gets nothing. But if he does? Shareholders win too.
Wait, Didn’t Shareholders Already Approve This?
Yes — kind of.
This plan, or versions of it, has already been approved in the past. In fact, shareholders have voted on Musk’s pay structure twice before.
But due to legal challenges and pressure from governance groups, Tesla is now asking for a re-vote in 2025, to reinforce the legitimacy of the deal and silence critics.
And that’s where ISS comes in — their opinion influences trillions of dollars in managed assets, and could seriously sway how institutions vote.
What’s Really at Stake?
Here’s why this matters so much:
- If the plan passes, Musk could gain control of an even larger slice of Tesla — and further cement his influence over one of the world’s most valuable companies.
- If it fails, it could signal a shift in investor sentiment, trigger stock volatility, and raise deeper questions about CEO accountability, corporate governance, and executive pay.
Some see Musk’s bold rewards as visionary. Others say it’s corporate excess at its worst.
Can Tesla Even Reach an $8.5 Trillion Market Cap?
To hit that target, Tesla would need to become more valuable than Apple, Microsoft, Amazon, and Google — combined.
It would mean a 10x increase from Tesla’s current valuation.
Critics argue that it’s nearly impossible. Supporters say never bet against Elon.
Still, even if Tesla does achieve the impossible, ISS says the risk-to-reward ratio is dangerously tilted, and such extreme compensation could set a precedent that spirals out of control.
Shareholder Showdown: November 5
All eyes are now on Tesla’s 2025 annual shareholder meeting, scheduled for November 5.
Expect fireworks.
Big-name investors, institutional funds, and retail shareholders will all cast votes that could determine:
- Whether Elon Musk becomes the first trillionaire CEO
- Whether the world’s most ambitious pay plan moves forward
- Whether Tesla continues to operate under Musk’s high-risk, high-reward leadership
Bottom Line: Billionaire Bonus or Corporate Overreach?
Elon Musk is already one of the richest people on the planet — and arguably the most powerful CEO alive.
Now, he’s asking for a potential $1 trillion payday to stay in charge of Tesla — and some of the biggest voices in finance are saying “enough is enough.”
Is this visionary leadership worth a trillion-dollar reward?
Or is it a dangerous example of corporate power going unchecked?
The vote is coming. And the stakes have never been higher.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.