Trillion dollar sky-high compensation passed! Musk wins "selling contract" Tesla, Inc. (TSLA.US) thoroughly binds Iron Man

On November 6th, Eastern Time, Tesla, Inc. shareholders officially approved CEO Elon Musk's $1 trillion compensation package at the annual shareholder meeting, setting a historical record for executive compensation. According to the company, over 75% of shareholders voted in favor of the package, marking the successful end of several weeks of campaigning by the board, Musk himself, and well-known retail investors. This compensation agreement paves the way for Musk to become the world's first trillionaire and plans to increase his stake in Tesla, Inc. to over 25% in the next decade. To receive full compensation, Musk must achieve a series of goals, including significantly increasing Tesla, Inc.'s market value, reversing the soft trend in the car business, advancing in the autonomous taxi and Optimus Siasun Robot & Automation projects, etc. Musk took the stage at the shareholder meeting wearing a black Tesla, Inc. jacket and addressed the cheering crowd, saying, "This is not just a new chapter for Tesla, Inc., but also a new book that has never been written in human history." This means not continuing old stories, but completely rewriting the business narrative - Tesla, Inc. evolving from an electric car manufacturer into a comprehensive ecosystem of AISiasun Robot & Automation + energy. He emphasized that Tesla, Inc. is accelerating vehicle production and expanding Optimus Siasun Robot & Automation capacity at an unprecedented rate. The compensation vote is crucial for Tesla, Inc.'s strategic progress - Musk had previously hinted that, without greater control, he might reduce his investment in the company or turn to other businesses. Now, with the deepening of the autonomous driving and artificial intelligence strategy, Musk is likely to continue to lead Tesla, Inc. As of the time of writing, Tesla, Inc.'s stock price rose 1.5% after hours, having previously risen 3.4% at one point during the trading day. By the close of trading on Thursday, Tesla, Inc.'s stock price had accumulated a 10.42% increase for the year, slightly below the 16% rise of the S&P 500 index. It is worth mentioning that Tesla, Inc. is currently facing a new controversy over shareholder proposals. The company stated on Thursday that it needed time to review a non-binding shareholder vote result - the proposal suggests that Tesla, Inc. invest in Musk's artificial intelligence startup, xAI. While the submitted votes were more in favor than against, the high number of abstentions requires further discussion. This proposal is advisory in nature, requiring the "board to determine an appropriate amount and form" for the investment, with no mandatory obligation for Tesla, Inc. to push it forward. Musk had previously publicly supported the investment and last year proposed acquiring Tesla, Inc. shares for $5 billion. Behind the astronomical compensation is a high-stakes gamble: Wall Street warnings versus retail investors' support, Musk wins a key battle While institutional investors like Nordea Investment Management publicly opposed the plan, its passage was still expected. Norway's sovereign wealth fund, known as the Norwegian Government Pension Fund, expressed appreciation for "the great value created by Mr. Musk's visionary leadership" but voted against Musk's compensation plan, believing it could dilute shareholder value and do little to mitigate the "key man risk" posed by Tesla, Inc.'s future being bet on Musk's shoulders. Furthermore, proxy advisory firms ISS and Glass Lewis had recommended voting against the plan, citing its excessive size and potential dilution of other shareholders' rights. Some executive compensation experts and other major shareholders warned that the compensation plan posed significant risks to investors. Experts say the compensation plan goes against governance principles, not only because of its large size but also because the board is so clearly placing Tesla, Inc.'s future in the hands of a leader with many conflicts of interest and the potential to consolidate unchecked power within the company. Charles Elson, founding director of the Weinberg Center for Corporate Governance at the University of Delaware, said Tesla, Inc.'s board is being "blackmailed" by a "superstar CEO." Krishna Palepu, a professor at Harvard Business School specializing in corporate governance, believes the compensation plan aligns with shareholder interests by linking Musk's compensation to significant stock price growth and requiring him to hold the shares he receives for five years. "The numbers are large because the goals are large." The Tesla, Inc. board vigorously lobbied for this plan, with board chairman Robin Denholm emphasizing in multiple media interviews the critical nature of the vote for Tesla, Inc.'s future. The day before the shareholder meeting, Denholm reiterated the risks of losing Musk when selling the compensation plan on Wednesday, warning that losing Musk could result in Tesla, Inc. "losing significant value," as the company's valuation largely depends on its future promises related to autonomous driving cars and humanoid Siasun Robot & Automation. Last week, Morgan Stanley warned that if Musk's compensation plan were rejected at the shareholder meeting, Tesla, Inc.'s stock price could immediately suffer a more than 10% drop. The failure of the plan to pass would be seen by the market as a vote of no confidence in Musk's leadership, potentially introducing uncertainty about the company's strategic prospects and increasing the risk of key talent loss. Earlier, Musk publicly threatened that if shareholders once again rejected his compensation plan, he would leave Tesla, Inc. Reports indicated that he had warned Tesla, Inc. board members that he might shift his focus to other companies under his umbrella - including the rocket firm SpaceX, the artificial intelligence startup xAI, and the brain-machine interface company Neuralink. Musk himself also emphasized at the earnings conference that he needed to hold a quarter stake in the company to advance the "Siasun Robot & Automation army" plan. Earlier this week, Capital Research Management Company announced its support for the plan, while some retail investors threatened to divest against brokerage firms opposing the plan through social media. Institutional investors, including the Florida State Board of Administration, also voted decisively in favor. Wade Bush Securities analyst Dan Ives pointed out that despite the profitability challenges the new plan faces, Tesla, Inc. is entering the most important chapter of the era of autonomous driving. Epic wealth transformation: If Musk achieves Tesla, Inc.'s $8.5 trillion market value target, his wealth will surpass the GDPs of most countries globally If Musk achieves all the goals, including increasing Tesla, Inc.'s market value to $8.5 trillion, the value of his stake in the company will reach approximately $2.4 trillion. According to the billionaire index, Musk currently has a net worth of around $460 billion, and this potential wealth will exceed the GDP of all countries globally except for seven, making him the first trillionaire in human history if the compensation plan is approved, lighting a clear path for Musk on a challenging journey. This year has been a rollercoaster of fortunes for Musk. At the beginning of the year, when Musk attended the inauguration ceremony with President Trump, his net worth was around $450 billion. However, due to Musk's political positions as a key figure in the efficiency department, some potential Tesla, Inc. buyers became alienated, leading to a rapid decline in his wealth. Particularly, the dispute between Musk and Trump directly led to a sharp drop in Tesla, Inc.'s stock price, marking the second largest single-day decline in the billionaire index's history. It is worth noting that Musk's wealth has since rebounded, mainly due to the recovery of Tesla, Inc.'s stock price and significant growth in the valuations of his privately-held companies like xAI, SpaceX, and others. However, this new compensation plan has faced strong opposition from longtime critics - New York State Comptroller Thomas DiNapoli publicly stated on Thursday that this move is "payment for unbridled power, not for performance"; Vermont Senator Bernie Sanders went even further to call the plan "utterly ridiculous." Sanders emphasized to the media, "While ordinary people face the heavy pressure of rent, medical care, groceries, and a decent retirement life, we are discussing how to further enlarge someone whose wealth already exceeds the combined total of 52% of American families." Looking back, a compensation plan worth billions of dollars proposed by Musk last year was rejected by a Delaware state judge, prompting Tesla, Inc. to appeal and move its registered location to Texas in response to the ruling. In August of this year, the Tesla, Inc. board also paid Musk a temporary bonus worth $30 billion in an attempt to partially make up for previous losses.