The Indicator from Planet Money Can shareholders influence Elon Musk's trillion dollar pay package?
46 snips
Sep 10, 2025 A controversial pay package for Elon Musk could be worth a staggering trillion dollars if certain goals are met. Shareholders are gearing up to vote on this high-stakes proposal, sparking discussion on their true influence in corporate governance. The dynamics between active and passive investors are examined, alongside individual challenges in making their voices heard. Additionally, concerns arise about Tesla’s governance and accountability, highlighted by letters from state treasurers urging for more responsiveness from the board.
AI Snips
Chapters
Transcript
Episode notes
Trillion-Dollar Pay Package Proposal
- Tesla's board proposed a pay package that could award Elon Musk up to about $1 trillion if certain goals are met.
- The package is not final and requires shareholder approval at the November annual meeting.
Oregon's Push For Board Change
- Elizabeth Steiner, Oregon's treasurer, wrote a strongly worded letter criticizing Tesla's board and joined other institutional investors to press for changes.
- Their group letter called for an independent director and limits on board members' outside commitments.
Shareholders Aren't Active Company Owners
- Shareholders hold voting rights but are not equivalent to active owners who run companies day-to-day.
- Even large holdings can be tiny percentages of outstanding shares, limiting direct influence.