Elon Musk's Tesla salary agreement worth one trillion dollars sparks outrage ahead of the imminent shareholder vote.
Elon Musk is once again at the center of controversy, this time due to a compensation proposal that could make him the first trillionaire CEO in history. As Tesla shareholders prepare to vote on the agreement next month, criticism from unions to investor groups has intensified, labeling it as 'outrageous,' 'unjustified,' and 'a maneuver to seize power disguised as performance incentive.'
The enormous compensation plan, which could reach a trillion dollars in ten years, ties Musk's pay to a series of extremely ambitious goals, including boosting Tesla's market value and making significant advancements in autonomous driving technology, robotics, and energy storage. If the company meets these objectives, Musk would receive tens of billions of dollars in stock options, dramatically increasing both his fortune and his control over Tesla.
But not everyone agrees. Unions, consumer advocacy organizations, and public pension funds have launched a coordinated campaign to urge shareholders to vote against the proposal. Under the slogan "Take Back Tesla," the coalition argues that the agreement would deepen inequality, dilute retail investor participation, and give Musk even more influence over the future of the company.
"It’s hard to imagine that one person is worth a trillion dollars for doing their job," said a union leader. "This is not capitalism; it’s celebrity idolization."
Major voting advisory firms, such as ISS and Glass Lewis, which advise large institutional investors, have also weighed in, recommending that shareholders reject the package. They argue that the dividend distribution is excessive, poorly structured, and indicative of poor oversight by the board of directors. Their stance could decisively influence the final vote, especially among large investment funds.
However, Tesla's board of directors supports Musk. They insist that the CEO's vision and leadership are what turned Tesla into a global powerhouse and claim that the agreement aligns his rewards with long-term success. "Elon Musk doesn’t just work for Tesla; he is Tesla," declared a board member, defending the proposal.
However, analysts claim that the dispute goes beyond money. It's about how much power a single man should have over one of the most valuable companies in the world. Given that Musk is already managing multiple projects, from SpaceX and Neuralink to X (formerly Twitter), some shareholders fear that Tesla will be sidelined while he benefits from the profits.
The final decision will be made when shareholders vote in early November. Whether the deal is approved or not, it has already reignited a significant debate about executive compensation, corporate responsibility, and how far companies should go to keep their star leaders happy.
As one investor said: "Tesla was built on bold ideas, but giving someone a check for a trillion dollars could be the boldest, and the most reckless, of all."
