A group of Tesla shareholders, joined by senior officials from several U.S. states, has urged investors to reject Elon Musk’s proposed $1 trillion compensation package. In a formal statement, they accused the company’s board of directors of “failing to exercise proper oversight” and allowing Tesla’s financial performance to deteriorate, reports the Baltimore Chronicle citing Reuters.
The coalition behind the appeal includes the SOC Investment Group, the state treasurers of Nevada, New Mexico, and Connecticut, as well as New York City Comptroller Brad Lander. They issued two key recommendations for shareholders ahead of the company’s November meeting: to vote against Musk’s unprecedented $1 trillion pay package and to block the re-election of three board members — Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.
According to the coalition, Tesla’s board has been excessively focused on “relentlessly retaining Musk at any cost,” a strategy they believe has harmed the company. The group pointed to declining operational and financial metrics and criticized what they described as a “failure to ensure meaningful, real-time oversight of management.”
The criticism comes shortly after Tesla reported record vehicle deliveries. However, analysts note that the surge was largely driven by a temporary spike in demand following the removal of government subsidies. The company now faces the risk of a sales downturn in the coming months.
The new compensation proposal, introduced in September, would be the largest corporate payout in history. It sets extremely ambitious performance goals and is designed to expand Musk’s control over Tesla’s strategic direction.
In response to the backlash, Tesla posted a message on social media platform X, saying that the compensation plan directly ties Musk’s earnings to the creation of “trillions of dollars in shareholder value.” The company emphasized that “if Elon Musk fails to deliver results, he gets nothing.”
The upcoming shareholder vote is being described as a referendum not only on Musk’s leadership but also on the board’s ability to govern one of the world’s most influential — yet unpredictable — CEOs. The staggering $1 trillion figure has reignited debate about executive pay, corporate accountability, and the limits of individual influence within major public companies.
Earlier we wrote that Elon Musk becomes first person with $500 Billion wealth.
