Elon Musk used Tesla’s earnings call to argue that proxy advisory firms don’t represent the true interests of Tesla shareholders regarding his trillion-dollar compensation package. The pointed argument came ahead of the decisive November 6 vote at the company’s annual meeting.
Tesla’s quarterly earnings presentation had addressed the company’s advances in AI technology, autonomous vehicles, and the Optimus humanoid robot before Musk’s dramatic intervention. His decision to question proxy advisors’ alignment with shareholder interests demonstrated his belief that their recommendations could lead investors to vote against their own financial benefit.
Musk articulated his position that meaningful voting control is essential for guiding Tesla’s strategic initiatives while accepting appropriate shareholder accountability. He framed the compensation issue as crucial for protecting the company’s ambitious projects in robotics and artificial intelligence from external interference.
The CEO directed his harshest criticism toward ISS and Glass Lewis, explicitly stating they don’t vote in shareholders’ interests and lack proper understanding of Tesla’s business. Musk’s passionate denunciation included specific concerns about being removed from leadership of robotics programs based on their recommendations.
CFO Vaibhav Taneja concluded the call by emphasizing the alignment between Musk’s compensation and shareholder value creation. Taneja explained that the board committee structured the package to ensure Musk receives nothing unless investors achieve substantial returns, making multiple appeals for shareholder support of the plan.
Elon Musk Argues Proxy Advisors Don’t Represent Tesla Shareholder Interests
