Tesla’s upcoming shareholder vote on Elon Musk’s proposed one trillion dollar compensation package continues to spark discussion in the financial and tech communities. The vote is scheduled for November 6 and has attracted opinions from Wall Street analysts, proxy advisory firms, and everyday retail investors. CNBC’s Mad Money host Jim Cramer recently shared his candid thoughts on why he believes Musk could be worth the payout.
A Controversial Proposal
Tesla is asking shareholders to approve Musk’s massive incentive based pay plan, which is among the largest in corporate history. Supporters argue that Musk has delivered extraordinary results and should continue leading the company. Critics claim the package is excessive and gives Musk too much control.
Jim Cramer Says Musk Delivers
Cramer posted his views on X, highlighting that Musk’s role goes beyond a typical CEO. He described Musk as the driving force behind Tesla’s evolution into a technology, artificial intelligence, and robotics leader.
Cramer emphasized Musk’s achievements in key areas:
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Expanding artificial intelligence for Full Self Driving
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Advancing Robotaxi technology
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Developing innovative batteries and energy storage solutions
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Pursuing long term growth and dominance in the electric vehicle industry
Cramer stated that Musk has “put AI to the test” and is one of the few CEOs pushing boundaries across multiple futuristic industries simultaneously. He described Musk as one of the few CEOs who is actually worth it.
Critics Raise Concerns
Not everyone agrees with Cramer. Proxy advisory firms ISS and Glass Lewis have recommended voting against Musk’s compensation plan. Their concerns focus on corporate governance, CEO power concentration, and investor protection.
Musk responded to critics by calling proxy firms corporate terrorists during Tesla’s third quarter earnings call, intensifying the debate.
What to Expect on November 6
The decision now rests with Tesla shareholders. The outcome could influence Tesla’s leadership and set a precedent for executive compensation in the tech industry.
Cramer’s final message was clear: give the man the pay package he wants. Whether investors will follow that recommendation remains to be seen.