This is probably the largest ever compensation proposal for a top executive of a company.
In the run-up to the meeting, there was increasing criticism of the size of the mega reward. Investment advisors ISS and Glass Lewis had advised shareholders to vote against the proposal. A senior New York state official said this week that he would do so.
Norwegian investment fund also wanted to vote against
Norway’s sovereign wealth fund also planned to vote against. The world’s largest sovereign wealth fund was concerned about the size of the package and said Tesla is doing too little to reduce the risks surrounding its high dependence on Musk.
Tension is rising around mega reward for Elon Musk: ‘Awarding a bonus of up to 1 trillion dollars will not be without a fight’
However, Tesla Chairman Robyn Denholm has warned that Musk could leave the company if shareholders do not approve the plans.
Tesla sales have suffered due to Musk’s activities outside the automaker. Earlier this year he was an advisor to American President Donald Trump, which led to a fuss about, among other things, major government cuts.
Musk was also criticized for the support he has expressed for the German radical right party AfD. Tesla also faces competition from cheaper Chinese cars.
There are conditions attached to the mega reward. Tesla’s stock market value must rise to $8.5 trillion to get the full amount. The stock market value is now about $1.5 trillion. Tesla must also achieve ambitious sales targets for robotaxis and AI robots.