①The new compensation plan for Tesla CEO Elon Musk will be put to a shareholder vote next Thursday (November 6). If approved, it will become the largest compensation package in corporate history; ②This compensation plan has faced strong opposition from some institutions, but it has also received public support from several well-known shareholders.
Cailian Press reported on October 31 (edited by Xia Junxiong) that the new compensation plan for Tesla CEO Elon Musk will be put to a shareholder vote next Thursday (November 6). If approved, it will become the largest compensation package in corporate history.
If Musk can achieve a series of ambitious revenue and product targets over the next decade, he will receive compensation of up to $1 trillion. As of Thursday's closing price on the U.S. stock market, Tesla’s total market capitalization was $1.46 trillion.
These targets include: Tesla reaching a market value of $8.5 trillion, selling 12 million vehicles, delivering 1 million humanoid robots, deploying 1 million autonomous taxis (Robotaxis), and increasing adjusted earnings from $16.6 billion in 2024 to $400 billion.
This compensation plan has been strongly opposed by some institutions. Both ISS and Glass Lewis, two major voting advisory firms, have recommended that shareholders vote against it. This prompted Musk to angrily retaliate during last week's Tesla earnings call, calling them "corporate terrorists."
However, many well-known shareholders have publicly expressed their support.
Tesla Chairman Robyn Denholm warned on Monday that if the company's annual general meeting fails to approve this massive compensation plan next week, Musk may choose to leave Tesla.
As the vote approaches, here are the positions of Tesla’s major shareholders.
Supporters’ camp
Florida State Board of Administration
The Florida State Board of Administration, chaired by Governor Ron DeSantis, manages over $280 billion in assets, including Tesla stock valued at more than $1 billion.
The agency said on Monday that it would support the compensation plan, describing it as a 'bold, performance-oriented incentive mechanism.'
Cathie Wood, ARK Invest
As a long-time investor in Tesla, Cathie Wood, founder of ARK Invest and known as 'Wooden Sister,' stated last week that she expects Elon Musk's new compensation plan to pass easily in the shareholder vote.
Wood also mentioned that she disagrees with the positions held by Glass Lewis and ISS.
Tesla is the largest holding in ARK’s fund portfolio, with a stock value of approximately $1 billion.
Dan Ives, Wedbush Securities
Dan Ives, a well-known Wall Street analyst and long-term Tesla bull, also supports Musk's compensation plan. In a report issued after Tesla announced the plan, he stated that it would help keep Musk focused on the company and accelerate Tesla’s 'autonomous driving and robotic future.'
Atreides Management
Gavin Baker, managing partner of Atreides Management, wrote on the social media platform X last Thursday that Atreides will vote in favor and expressed hope that all companies he invests in adopt similar CEO compensation mechanisms.
Baker wrote: 'Elon Musk's involvement is crucial to maintaining Tesla's current development path.'
As of June 2025, Atreides held approximately 321,000 shares of Tesla stock, valued at about $141 million at the time.
Opposition camp
New York State Retirement Fund
New York State Comptroller Thomas DiNapoli sent a letter to Tesla shareholders on Monday, urging them to vote against the proposal and criticizing the board for its 'concerning lack of independence.'
According to the latest filing with the U.S. Securities and Exchange Commission (SEC), the New York State Retirement Fund holds approximately 3.5 million shares of Tesla stock, valued at about $1.7 billion.
American Federation of Teachers
As the second-largest teachers' union in the United States, the American Federation of Teachers (AFT) joined forces this month with multiple labor unions, state financial officials, and investment institutions to call on shareholders to vote against the proposal, citing concerns that it fails to ensure Elon Musk's sufficient focus on Tesla.
California Public Employees' Retirement System
As the largest public pension fund in the United States, the California Public Employees' Retirement System (CalPERS) voted against Elon Musk's previous $46 billion compensation package last year and has maintained its stance this time as well.
The global equity investment head of the fund stated on Thursday that CalPERS will vote against the proposal because it far exceeds the compensation levels of other CEOs and concentrates excessive power in the hands of a single shareholder.
It is estimated that CalPERS holds approximately 5 million shares of Tesla, making it one of the largest institutional shareholders publicly opposing the compensation plan.
Editor/Rocky
