Tesla shareholders are voting Thursday on whether to approve what would be the largest executive pay package in corporate history, a staggering $878 billion for Chief Executive Officer Elon Musk.
The vote, taking place during the company’s annual general meeting in Austin, Texas, could determine not only Musk’s future at the electric vehicle giant but also the company’s direction in artificial intelligence and robotics.
According to Reuters, the proposal ties Musk’s payout to a series of steep performance targets, including producing 20 million vehicles within a decade and deploying a million robotaxis. Tesla’s market valuation would also need to soar from about $1.5 trillion to as high as $8.5 trillion for Musk to fully earn the package.
While the Tesla board describes the plan as a fair reward for “highly ambitious” goals, some major investors have voiced opposition, calling the payout excessive. Norway’s sovereign wealth fund and several proxy advisors are among those who have urged a “no” vote.
Supporters, however, argue that shareholders would benefit if Musk meets the milestones. The billionaire entrepreneur, who holds roughly 15% of Tesla’s shares, is allowed to vote in the Texas-based meeting, a change from when the company was incorporated in Delaware.
Tesla’s board has also warned that Musk could step down if shareholders reject the proposal, intensifying pressure on the outcome.
Meanwhile, shareholders are also considering whether Tesla should invest in Musk’s artificial intelligence firm, xAI, a move the billionaire has publicly supported but the board has not yet endorsed. Investors will decide whether the partnership could accelerate Tesla’s AI ambitions or deepen potential conflicts of interest.
The meeting also includes a proposal to scrap Tesla’s supermajority voting rule, replacing it with a simple majority system. Similar efforts in previous years failed to win enough support, but analysts say this year’s vote could signal how far shareholders are willing to go in reshaping Tesla’s corporate governance.
The results of the vote are expected later today, with analysts calling it a “make or break moment” for Musk’s leadership and Tesla’s future.
Ademide Adebayo
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