Tesla Inc. shareholders are advised by ISS to vote against Elon Musk’s $1 trillion compensation plan due to concerns about its magnitude and design. Musk’s compensation package aims to keep him focused on Tesla over the next decade by reaching ambitious goals. Shareholders will vote on the package at the annual meeting on Nov. 6.

In a battle for shareholder support, Tesla defends Musk’s compensation plan against ISS’s recommendations. The plan, which includes ambitious goals for Musk to meet, could potentially increase his holdings in the company to at least 25%. Musk has threatened to build products outside of Tesla if he can’t increase his equity holdings.

ISS also urged shareholders to reject a proposal for Tesla to invest in Musk’s AI company, xAI, citing it as a highly unusual request. Despite ISS’s recommendations, Tesla is pushing to rally shareholder support for the pay proposal through a video on X. The outcome will be determined at the annual shareholders meeting.

In 2024, a Delaware judge struck down Musk’s 2018 pay deal, citing undue influence and conflicts of interest. Musk’s pay package, currently valued at over $100 billion, was put to an advisory vote last year and ultimately approved by investors. ISS recommended against awarding Musk backpay from the 2018 plan.

Read more at Yahoo Finance: Tesla Shareholders Should Reject Musk’s $1 Trillion Pay Package, ISS Advises