ISS Urges Tesla Shareholders To Reject Elon Musk's $1 Trillion Pay Plan

(RTTNews) - Institutional Shareholder Services (ISS), a proxy advisory firm, has recommended that Tesla investors vote against a proposed compensation package for Chief Executive officer Elon Musk that could grant him nearly $1 trillion in stock.

The "mega performance equity award," designed to retain Musk long-term, carries what ISS described as an "astronomical grant value" tied to ambitious performance targets. If achieved, these targets could generate substantial value for shareholders, but ISS remains unconvinced of the plan's alignment with shareholder interests.

Tesla's annual shareholder meeting and proxy vote is scheduled for November 5, 2025.

In response to ISS's recommendation, Tesla posted on X, criticizing the advisory firm for missing "fundamental points of investing and governance." The company also noted that ISS had previously opposed compensation packages that shareholders had already approved, including the 2025 CEO Performance Award, which Tesla emphasized offers Musk no payout unless shareholders benefit significantly.

Tesla is urging shareholders to support the board's recommendations on all proposals outlined in the 2025 proxy.