Tesla Board in Turmoil: High-Stakes Vote on Elon Musk's Mega Pay Package Looms
Tesla shareholders are set to vote on Thursday, November 6, 2025, on a proposed multi-billion dollar pay package for CEO Elon Musk. This contentious plan, tied to ambitious market capitalization goals, faces opposition from major investors like Norway's Norges Bank due to concerns over its size and potential dilution, while others view it as a reward for significant value creation.
Tesla Inc.'s board of directors is on the cusp of a pivotal shareholders' meeting scheduled for Thursday, 6 November 2025, where investors will cast their decisive votes on a proposed mega pay package for the company's billionaire founder and CEO, Elon Musk. This crucial vote will determine the fate of a compensation plan that could see Musk receive up to $878 billion in company stock, with the alternative risk of the influential CEO potentially departing the electric vehicle giant.
The $1 trillion compensation plan, initially proposed by Tesla's board in September 2025, is intricately structured. It is contingent upon Musk's ability to significantly grow the company's market capitalization (M-Cap) to an ambitious $8.5 trillion, alongside the achievement of various challenging operational targets. This performance-based structure involves allocating Elon Musk up to 423.7 million restricted company shares, which represents nearly 12% of Tesla's total outstanding shares.
The compensation scheme outlines 12 specific market capitalization goals. These include an initial target of $2 trillion, followed by nine increments of $500 billion each, and culminating in two substantial $1 trillion achievements, collectively leading to the targeted $8.5 trillion M-Cap over the coming years.
However, the proposed package has met with significant opposition. Norway's mega wealth fund, Norges Bank Investment Management (NBIM), a major shareholder with approximately a 1.12% stake in Tesla, publicly announced on Tuesday, 4 November 2025, that it had voted against Musk's mega pay package. NBIM expressed deep concerns regarding the