Musk’s $1 trillion pay plan doesn’t force him to keep focus on Tesla, critics say

A new compensation proposal that could reward Elon Musk with over $1 trillion in the next ten years is drawing criticism from Tesla shareholders. According to a report from the proxy advisory firm Institutional Shareholder Services (ISS), this plan, intended to ensure Musk's commitment to Tesla over his other ventures, lacks specific measures to guarantee his focus remains solely on the electric vehicle company. The ISS report highlights concerns that the massive potential payout, described as an 'astronomical grant value,' could dilute shareholder value significantly. With Musk already holding a 19.8% stake in Tesla, the report questions whether such a compensation package is necessary or appropriate to align his interests with those of the company. Set for a shareholder vote on November 6, the proposal could grant Musk more than 423.7 million Tesla shares, potentially raising his ownership stake to 28.8%. While Tesla estimates the shares' value at $87.8 billion, ISS places it at a higher $104.4 billion. If Musk meets all specified market capitalization goals, the total value of his shares could surpass $1 trillion. According to the ISS, achieving the ambitious market capitalization targets would necessitate unprecedented growth, requiring Tesla to reach a valuation of $8.5 trillion. This would exceed the combined market cap of Tesla's largest competitors in the AI sector. The compensation package also combines operational benchmarks, such as delivering 20 million vehicles, with ambitious market valuation milestones, including achieving a $2 trillion market cap and deploying significant numbers of Full Self-Driving subscriptions, AI robots, and robotaxis.