During Tesla’s earnings call, Elon Musk and CFO Vaibhav Taneja claimed the board structured his trillion-dollar compensation package specifically to benefit shareholders. The defense came as investors prepare to vote on the controversial plan at the November 6 annual meeting in Austin.
Tesla’s quarterly earnings presentation had covered the company’s progress in AI applications, autonomous vehicles, and the Optimus robot program before Musk’s intervention. His decision to emphasize shareholder benefits demonstrated an attempt to counter proxy advisor recommendations against the compensation package.
Musk articulated his position that adequate voting control is necessary to maintain strategic influence over Tesla while accepting appropriate shareholder oversight. He framed the compensation issue as crucial for continuing to lead ambitious projects in robotics and artificial intelligence without facing removal based on external recommendations.
The CEO directed sharp criticism toward ISS and Glass Lewis, accusing these proxy advisory firms of lacking understanding about Tesla’s business model and issuing recommendations contrary to shareholder interests. Musk specifically expressed concern about being removed from leadership of robotics initiatives based on their advice.
CFO Vaibhav Taneja concluded the call by emphasizing the performance-based structure of the compensation package. Taneja explained that the board committee designed the plan to ensure Musk receives nothing unless shareholders achieve substantial returns, stressing the alignment between executive compensation and investor value creation. He made multiple appeals for shareholder approval.