"The pay package aims to lock in Musk to the CEO role at Tesla for the next decade, as it will only be paid in full if he is able to unlock each tranche based on company growth, which will reward shareholders. However, the sum is incredibly large and would give Musk the ability to become the first trillionaire in history, based on his holdings. This is precisely why ISS is advising shareholders to vote against the pay plan."
"The group said that Musk's pay package will lock him in, which is the goal of the Board, and it is especially important to do this because of his "track record and vision." However, it also said the size of the pay package will enable Musk to have access to "extraordinarily high pay opportunities over the next ten years," and it will have an impact on future packages because it will "reduce the board's ability to meaningfully adjust future pay levels.""
Institutional Shareholder Services (ISS) recommends shareholders vote against Elon Musk's proposed $1 trillion Tesla pay package. The package ties decade-long retention to unlocking tranches based on company growth and is designed to reward shareholders. ISS called the package astronomical, warning it grants Musk access to extraordinarily high pay opportunities over the next ten years and could limit the board's ability to meaningfully adjust future pay levels. ISS also warned the package's design could pay massive amounts for partial achievements, creating potential dilution for existing investors. If all tranches are met, Tesla's market capitalization could reach about $8.5 trillion.
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