Institutional Shareholder Services (ISS), a leading proxy advisory firm, has recommended that Tesla investors vote against a proposed compensation package for CEO Elon Musk. The package, described as a “mega performance equity award,” could potentially grant Musk nearly $1 trillion in stock.
Designed to retain Musk over the long term, the award carries what ISS calls an “astronomical grant value” tied to highly ambitious performance targets. While achieving these targets could generate substantial value for shareholders, ISS remains unconvinced that the plan aligns well with shareholder interests.
Tesla’s annual shareholder meeting and proxy vote are scheduled for November 5, 2025. In response to ISS’s recommendation, Tesla took to X (formerly Twitter) to criticize the advisory firm, accusing it of missing “fundamental points of investing and governance.”
The company also pointed out that ISS had previously opposed compensation packages that shareholders had ultimately approved, including the 2025 CEO Performance Award. Tesla emphasized that this award offers Musk no payout unless shareholders benefit significantly.
Tesla is urging its shareholders to support the board’s recommendations on all proposals outlined in the 2025 proxy.
*The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.*
https://www.nasdaq.com/articles/iss-urges-tesla-shareholders-reject-elon-musks-1-trillion-pay-plan