Gary Black, managing partner at The Future Fund, believes Tesla Inc. (NASDAQ:TSLA) shareholders are overwhelmingly likely to approve CEO Elon Musk's proposed, nearly $1 trillion pay package at the upcoming November 6 meeting.
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‘Near Zero Chance’ of Rejection
On Monday, in a post on X, Black said, “There is a near-zero chance that $TSLA shareholders will vote down Elon's new proposed comp plan,” which could be worth as much as $1 trillion, making it one of the largest compensation packages in corporate America.
Black quotes Wedbush analyst Dan Ives, who held similar views, and recently said in an interview with Yahoo Finance, that he has a “better chance of starting for the New York Yankees than this comp package getting voted down.” Black concluded his post saying, “Amen.”
The proposal ties Musk’s payout to a series of aggressive targets that the company has to achieve under his leadership over the next decade.
Over the course of 12 tranches, Musk stands to receive stock awards worth over $900 billion if the company’s market capitalization touches $8 trillion, a 463% increase from its $1.42 trillion market capitalization.
Approve The Trillion, Or ‘Lose The Vision’
Investor and long-time Tesla bull, Tom Nash, has come out in support of Musk’s compensation package, urging investors to approve the plan.
“If Tesla shareholders want Elon to stay focused on Tesla's future, they need to approve this plan,” he said, on Monday, in a post on X, adding that investors should either “Approve the Trillion,” or “lose the vision,” underscoring Musk’s importance to the company.
Ross Gerber: Musk’s Pay Package An ‘Insanity’
Investor Ross Gerber, a former Tesla bull, has, however, questioned the company’s pay package for its famed CEO, saying, “Obviously, the pay package thing is insanity,” while warning that it could open the door to more “litigation” against the company if it passes.
Gerber also questioned the company’s board, asking if anyone tried to negotiate with Musk, “I doubt it,” he said. “The Tesla BOD is still not ‘independent’ from Elon… another mess coming.”
Tesla shares were up 4.31% on Monday, trading at $452.42, and are down 0.29% in pre-market. The stock scores high on Momentum and Quality in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights on the stock, its peers and competitors.
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