A group of Tesla shareholders including SOC Investment Group and several state officials urged investors to vote against CEO Elon Musk’s $1-trillion (R17.30-trillion) pay package at the company’s November meeting, a regulatory filing showed on Thursday.
In the letter to Tesla shareholders, the coalition, which includes state treasurers of Nevada, New Mexico and Connecticut, called on investors to oppose the re-election of directors Ira Ehrenpreis, Joe Gebbia and Kathleen Wilson-Thompson.
The group cited what it called the board’s “relentless pursuit” of retaining Musk, saying it has delayed progress on key goals set at the last annual meeting, and pointed to declining operational and financial performance and a “failure to provide meaningful real-time oversight of management”.
Despite reporting record quarterly deliveries on Thursday, Tesla faces worries that the expiration of the US EV tax credit could turn the buying rush into a trickle.
Last month, Tesla’s board proposed a $1-trillion compensation plan for Musk in what it described as the largest corporate pay package in history, setting ambitious performance targets and aiming to address his push for greater control over the company.
Among the state officials opposing the package is New York City comptroller Brad Lander, a longtime critic of Tesla’s board and its oversight of Musk.
Though the city’s pension funds are not among top shareholders of Tesla and other large companies, Lander and his staff have often been involved in reform campaigns that focus debates at annual meetings. His term as comptroller ends on January 1 2026.
In response to Thursday’s letter, Tesla said in a post on X the performance incentive plan aligns Musk’s compensation with shareholder value creation “of trillions of dollars”.
“If Elon Musk doesn’t deliver results, he receives nothing,” the company said.
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