Elon Musk Calls Firms ‘Corporate Terrorists’ For Opposing His $1 Trillion Pay Plan
Topline
Tesla chief Elon Musk called two shareholder advisory firms opposing his proposed $1 trillion pay package “corporate terrorists” during an earnings call Wednesday, blasting the firms after one of them warned of “unmitigated concerns” revolving around the controversial pay proposal.
Musk made the comments during a Tesla earnings call Wednesday. (Photo by Harun Ozalp/Anadolu via Getty Images)
Anadolu via Getty Images
Key Facts
Musk made the comment near the end of Tesla’s third-quarter earnings call and said the recommendations from advisory firms Glass Lewis and Institutional Shareholder Services to vote against his pay package were “asinine.”
“Those guys are corporate terrorists,” Musk said of the firms, saying “many” of the “passive” index firms that have equity in Tesla align their votes with Glass Lewis and ISS recommendations.
Musk said the firms have “made many terrible recommendations in the past” that, if followed, would have been “extremely destructive” to Tesla’s future.
Glass Lewis and ISS previously recommended shareholders vote against Musk’s $56 billion pay package last year, which was approved by Tesla shareholders but is still being held up in court.
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Forbes Valuation
We estimate Musk’s net worth at $487.5 billion, making him the world’s wealthiest person, ahead of Oracle founder Larry Ellison ($331 billion) and Meta founder Mark Zuckerberg ($251.2 billion).
Tangent
Tesla’s third quarter earnings partially fell short of expectations. The electric vehicle maker secured $28.09 billion in revenues during the quarter, well above Wall Street expectations of $26.5 billion. However, earnings per share of $0.50 clocked in below projections of $0.56. Tesla shares closed down a fraction of a percent Wednesday before dropping more than 3.5% in after-hours trading.
Key Background
Musk has consistently run into obstacles while trying to get his eye-popping pay packages approved. The $56 billion proposal was made several years ago before being blocked by a Delaware judge in January 2024. The judge, Kathaleen McCormick, pointed to some board members’ close relationship with Musk and said shareholders were given insufficient information to make an informed decision on the pay proposal. Tesla shareholders approved the package for a second time in June of last year as the company appealed the judge’s ruling. McCormick shot down the $56 billion plan again in December. Lawyers for Tesla are still urging her to restore the package in an ongoing case that could be wrapped up in the coming months. Tesla investors and multiple state government officials are urging shareholders to vote against Musk’s latest pay plan, which could be worth $1 trillion if the company reaches certain goals over the next decade.
Surprising Fact
Musk threatened to leave Tesla before his $1 trillion compensation proposal was formalized. The billionaire “raised the possibility that he may pursue his other interests and leave Tesla” if he was not assured a 25% voting interest.
Further Reading
Tesla’s $1 Trillion Pay Proposal For Musk Faces Investor Pushback—What We Know (Forbes)
Elon Musk Threatened To Quit Tesla Before $1 Trillion Compensation Deal (Forbes)
