Major Investor Backs Musk’s Compensation Plan
ARK Invest founder Cathie Wood has publicly supported Elon Musk‘s proposed $1 trillion compensation package at Tesla, predicting it will pass “decisively” despite opposition from proxy advisory firms, according to her social media statements. The prominent investor, known for her bullish stance on innovative technologies, reportedly expressed confidence that shareholder support would mirror the approval of Musk’s 2018 compensation plan.
Unprecedented Compensation Structure
The proposed package, reportedly the largest in corporate history, would award Musk up to $1 trillion in stock if he meets specific performance targets, according to the company’s filing. Sources indicate the ambitious goals include achieving an $8.5 trillion market valuation for Tesla by 2035 and hitting twelve operational milestones ranging from selling 12 million vehicles to deploying one million humanoid robots and robotaxis. Analysts suggest the compensation plan would significantly increase Musk’s stake in the company from 13% to nearly 29%, granting him substantially more control over the electric vehicle manufacturer’s future direction.
The company’s board has reportedly warned that rejection of the package could lead to reduced involvement from Musk or potentially his complete departure from the company. This warning comes amid broader industry developments in executive compensation and corporate governance.
Institutional Opposition and Retail Support
Influential proxy advisory firms including Institutional Shareholder Services (ISS) have reportedly urged investors to vote against the compensation package, citing its enormous scale and insufficient safeguards. However, Wood reportedly dismissed these concerns while criticizing the institutional investment system that amplifies them.
“Isn’t it sad, if not damning, that institutional shareholders rely on proxy firms to tell them how they should vote?” Wood wrote in a follow-up post, according to reports. She further characterized index fund-based investing as “a form of socialism” and declared the investment system “broken.”
Wood reportedly anticipates that retail investors will dominate the voting process, similar to the 2018 compensation package approval. This perspective aligns with her broader investment philosophy focusing on innovation-driven growth, which she has applied to various related innovations in technology sectors.
Historical Context and Future Implications
The current compensation proposal follows a Delaware court’s decision to strike down Musk’s 2018 package, which Wood previously labeled “un-American,” according to her public statements. The new vote, scheduled for November 6, represents a critical test of shareholder confidence in Musk’s leadership as Tesla expands into artificial intelligence, robotics, and autonomous driving.
Musk quickly endorsed Wood’s assessment on social media, replying “Absolutely” to her prediction of decisive approval. The exchange highlights the ongoing market trends toward visionary leadership compensation in technology companies.
If approved, the compensation package would reportedly tie Musk’s rewards directly to Tesla’s achievement of extraordinary growth targets, including increasing adjusted earnings from $16.6 billion in 2024 to $400 billion. This ambitious vision comes during a period of significant recent technology sector transformations and competitive pressures.
This article aggregates information from publicly available sources. All trademarks and copyrights belong to their respective owners.
Note: Featured image is for illustrative purposes only and does not represent any specific product, service, or entity mentioned in this article.
