During Tesla’s earnings call, Elon Musk accused proxy advisory firms of threatening the company’s innovation agenda with their opposition to his trillion-dollar compensation package. The serious accusation came as shareholders prepare to vote on the controversial plan at the November 6 annual meeting.
Tesla’s quarterly earnings discussion had covered the company’s technological developments in AI, autonomous vehicles, and the Optimus humanoid robot before Musk’s unscheduled intervention. His decision to accuse proxy advisors of threatening innovation demonstrated his belief that their recommendations could fundamentally undermine Tesla’s strategic objectives.
Musk articulated his position that meaningful voting control is essential for protecting Tesla’s strategic vision while accepting appropriate shareholder oversight. He framed the compensation issue as crucial for continuing ambitious projects in robotics and artificial intelligence without facing removal based on recommendations from advisors he characterized as lacking technical expertise.
The CEO directed particularly harsh criticism at ISS and Glass Lewis, suggesting these advisory firms fundamentally misunderstand Tesla’s business model and technological mission. Musk’s colorful language included specific references to not feeling comfortable building a “robot army” while facing potential removal based on their advice.
CFO Vaibhav Taneja wrapped up the controversial call by emphasizing the performance-based structure of Musk’s pay package. The CFO stressed that the board designed the compensation to ensure Musk receives nothing unless shareholders see substantial returns, making repeated requests for approval from investors before concluding.