"Cathie Wood is betting that Elon Musk's new $1 trillion Tesla pay package will comfortably clear its first hurdle: a shareholder vote. In a post on X on Sunday night, the ARK Invest founder and longtime Tesla bull said she expects Musk's compensation plan to win "decisively," despite opposition from influential proxy advisory firms and index funds that she said dominate institutional investing."
"Tesla's new compensation proposal, set for a shareholder vote on November 6, would be the largest in corporate history. The deal would award Musk up to $1 trillion in stock if he meets performance targets - including pushing Tesla's market value to $8.5 trillion and meeting 12 "operational milestones." Those range from selling 12 million cars and one million humanoid robots to launching a million robotaxis and boosting adjusted earnings from $16.6 billion in 2024 to $400 billion."
A major investor expects Elon Musk's proposed $1 trillion Tesla compensation plan to win decisively at the November 6 shareholder vote despite opposition from proxy advisory firms and index funds. The proposal would award Musk up to $1 trillion in stock if Tesla reaches an $8.5 trillion market value and achieves 12 operational milestones. Milestones include selling 12 million cars, producing one million humanoid robots, launching one million robotaxis, and increasing adjusted earnings from $16.6 billion in 2024 to $400 billion. Institutional Shareholder Services urged investors to vote against the package, citing its scale and lack of guardrails. Tesla's board warned that rejection could lead Musk to reduce involvement or depart. Tesla currently represents about 2.4% of the S&P 500, which may limit index funds' influence on the outcome.
Read at Business Insider
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