"The plan is designed "to retain Musk and keep his time and attention on Tesla instead of his other business ventures," but "there are no prescriptive elements within the award to ensure his focus and time remain on Tesla as opposed to his other ventures, undermining the award's primary rationale," the advisory firm said in a report for its clients."
""Full achievement of the market capitalization milestones requires historic growth of approximately $7.5 trillion (as of the grant date) to reach the final $8.5 trillion target," the ISS report said. "This would result in higher market cap than that of Tesla's largest current competitors in the AI space combined... If all of the shares are ultimately delivered and the highest market cap milestone is achieved, the potential value of those shares is more than $1 trillion.""
ISS recommends Tesla shareholders reject a compensation plan that could award Elon Musk more than $1 trillion if all performance and market-cap milestones are met. The plan would grant up to 423.7 million shares across 12 tranches and could raise Musk's ownership to as high as 28.8 percent. ISS cites a lack of prescriptive elements to ensure Musk's focus on Tesla and warns the grant's extreme size could dilute value for other shareholders. Tesla values the grant at $87.8 billion while ISS values it at $104.4 billion, and the highest market-cap milestones require historic growth.
Read at Ars Technica
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