Tesla Investors Urged to Block Musk’s $1 Trillion Compensation Proposal

by Mason Drayton • 4 min read • Updated: November 2, 2025
Tesla Investors Urged to Block Musk's $1 Trillion Compensati - Shareholder Campaign Targets Musk Compensation A coalition of

Shareholder Campaign Targets Musk Compensation

A coalition of labor unions and corporate watchdog groups has launched the “Take Back Tesla” campaign, urging shareholders to reject what they describe as an “outrageous” compensation package for CEO Elon Musk that could be worth nearly $1 trillion, according to reports. The campaign comes just ahead of Tesla’s quarterly earnings report and ahead of next month’s annual shareholder meeting where the proposal will be voted on.

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Coalition Composition and Arguments

The coalition includes the American Federation of Teachers, Public Citizen, Americans for Financial Reform, the Communication Workers of America, corporate watchdog group Ekō, People’s Action and Stop the Money Pipeline. According to their campaign website, they oppose the compensation package because Musk’s “political activities have damaged Tesla’s brand and distracted him from leadership at Tesla.” Sources indicate the group believes the proposed plan fails to require Musk to focus more on the automaker than his political interests or other business ventures.

Board Rationale and Shareholder Response

Tesla’s board reportedly floated the pay proposal in September, arguing that the largest-ever CEO compensation plan was appropriate and necessary to lock Musk in for a decade. However, proxy advisory firms ISS and Glass Lewis have recommended against authorizing the $1 trillion pay plan, according to their analyses. The proposal was disclosed amid ongoing tensions over Musk’s previous 2018 compensation package, which amounted to approximately $56 billion in stock when it vested.

Targeting Institutional Investors

The campaign is specifically targeting public pension funds and other institutional investors, encouraging the public to petition state treasurers and financial officers who oversee funds on behalf of workers and retirees. “Public pension funds are significant shareholders in Tesla, and the asset managers who invest those funds have even larger holdings,” the campaign website states. “That’s our money and we should tell the people who invest it for us that we want them to vote to hold Musk and Tesla Board members accountable.”, according to recent innovations

Educational Outreach and Voting Guidance

The coalition reportedly plans to share educational materials online that teach investors how to vote their shares or influence fund managers who vote on their behalf. This approach suggests a strategic effort to mobilize both individual and institutional shareholders ahead of next month’s critical vote. Tesla responded to proxy firm recommendations by noting that ISS and Glass Lewis have “recommended against Tesla’s proposals time and time again since the 2018 CEO Performance Award was introduced,” adding that shareholders who sold would “have missed out on our market capitalization soaring by 20x from March 2018 to August 2025.”

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Broader Governance Concerns

Analysts suggest the campaign reflects broader concerns about corporate governance at Tesla and Musk’s divided attention across multiple companies, including SpaceX, X (formerly Twitter), and Neuralink. The compensation vote next month is seen as a critical test of shareholder sentiment regarding Musk’s leadership and the board’s oversight responsibilities. Tesla reportedly did not immediately respond to requests for comment about the campaign.

References & Further Reading

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