Elon Musk used Tesla’s earnings call to warn shareholders against following advice from proxy advisory firms regarding his trillion-dollar compensation package. The urgent warning came ahead of the critical November 6 vote that will determine the package’s fate.
Tesla’s quarterly financial review had addressed the company’s technological developments in AI, autonomous vehicles, and the Optimus humanoid robot before Musk’s intervention. His decision to interrupt standard proceedings demonstrated his conviction that proxy advisor recommendations could lead shareholders to make decisions contrary to their own interests.
Musk explained his need for adequate voting influence to maintain strategic control over Tesla while remaining subject to shareholder accountability. He framed the compensation issue as essential for continuing to lead ambitious projects in robotics and artificial intelligence without facing removal based on external recommendations.
The CEO directed particularly sharp criticism at ISS and Glass Lewis, suggesting these proxy advisory firms lack competence and alignment with shareholder interests. Musk’s passionate denunciation included concerns about being ousted while developing what he termed a “robot army” based on their advice.
CFO Vaibhav Taneja wrapped up the controversial call by emphasizing the performance-based nature of Musk’s pay package. The CFO stressed that the board committee designed the compensation to ensure Musk receives nothing unless shareholders see substantial returns, making repeated requests for approval from investors.
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