Musk's $1T payout plan hits roadblock from proxy advisory firms
Elon Musk is aiming for a $1 trillion payout from Tesla, but only if the company hits some wild goals—like an $8.5 trillion market cap and 10 million Full Self-Driving subscriptions.
Big proxy firms ISS and Glass Lewis aren't on board, warning that this could undermine shareholder rights and governance standards.
On Tesla's most recent earnings call, Musk pushed back, saying these firms just don't get what shareholders want: "I just think that there needs to be enough voting control to give a strong influence. But not not so much that I can't be fired if I go insane."
Egan-Jones partially backs Musk's proposal
Unlike ISS and Glass Lewis, another proxy firm called Egan-Jones is partly backing Musk's proposal—as long as those ambitious targets are met first.
While there's plenty of debate over his leadership style (which is famously bold), Musk seems set on steering Tesla toward big innovations in robotics and AI, no matter the noise around his paycheck.