Elon Musk, CEO of Tesla, called advisory firms “corporate terrorists” during Tesla’s Wednesday earnings call. The firms Musk criticized were Institutional Shareholder Services (ISS) and Glass Lewis. Musk made the comments after months of being quiet following his resignation from the Department of Government Efficiency and conflicts with President Donald Trump.
Musk said, “I just don’t feel comfortable building a robot army here and then being ousted because of some asinine recommendations from ISS and Glass Lewis, who have no freaking clue. I mean, those guys are corporate terrorists.” Musk also posted on X criticizing proxy advisory firms in general, echoing ARK Invest CEO Cathie Wood.
Proxy advisory firms do not vote directly at shareholder meetings; they only provide recommendations, as per the report by Fortune report. Major investors like BlackRock, Vanguard, and State Street do their own research and make independent voting decisions. ISS and Glass Lewis had previously recommended rejecting Musk’s 2018 pay package, but shareholders approved it twice anyway.
Glass Lewis told Fortune that its role is to give analysis and recommendations, and shareholders ultimately decide on Musk’s pay. ISS declined to comment. Tesla did not immediately respond to requests for comment.
One target includes increasing Tesla’s market value by more than 500% to $8.5 trillion. ISS and Glass Lewis recently questioned Musk’s pay package because of its huge size and the potential dilution of other shareholders’ stakes. Tesla said normal pay benchmarking does not apply to Musk because no other company has “remotely similar goals embodied in their compensation programs.”
Glass Lewis called Musk’s 2025 performance award “unprecedented” and about 33.5 times larger than his 2018 package. As per Fortune, Glass Lewis wrote, “It is clear that the quantum, on a realizable and granted basis, outpaces all other pay packages.”
Musk called them “corporate terrorists” because he thinks their shareholder voting recommendations have too much influence and are not based on real ownership or company interests.
Q2. How much is Elon Musk’s Tesla pay package worth?
If he meets Tesla’s goals, Musk’s pay package could give him about $1 trillion over 10 years.
Musk said, “I just don’t feel comfortable building a robot army here and then being ousted because of some asinine recommendations from ISS and Glass Lewis, who have no freaking clue. I mean, those guys are corporate terrorists.” Musk also posted on X criticizing proxy advisory firms in general, echoing ARK Invest CEO Cathie Wood.
Musk criticizes proxy advisory firms
Musk argued these firms have too much influence, especially over passive investors like index funds, who hold shares for clients and have big voting power. He said, “ISS and Glass Lewis have no actual ownership themselves and often vote along random political lines unrelated to shareholder interests! This is a major problem that is not just limited to Tesla.”Proxy advisory firms do not vote directly at shareholder meetings; they only provide recommendations, as per the report by Fortune report. Major investors like BlackRock, Vanguard, and State Street do their own research and make independent voting decisions. ISS and Glass Lewis had previously recommended rejecting Musk’s 2018 pay package, but shareholders approved it twice anyway.
Glass Lewis told Fortune that its role is to give analysis and recommendations, and shareholders ultimately decide on Musk’s pay. ISS declined to comment. Tesla did not immediately respond to requests for comment.
Tesla pay package and Musk’s wealth
Elon Musk’s net worth is $455 billion. Musk said he needs an ownership stake “in the mid-20s approximately” to reach his goals at Tesla. The controversial pay package could give Musk about $1 trillion over 10 years if he meets certain performance targets.One target includes increasing Tesla’s market value by more than 500% to $8.5 trillion. ISS and Glass Lewis recently questioned Musk’s pay package because of its huge size and the potential dilution of other shareholders’ stakes. Tesla said normal pay benchmarking does not apply to Musk because no other company has “remotely similar goals embodied in their compensation programs.”
Glass Lewis called Musk’s 2025 performance award “unprecedented” and about 33.5 times larger than his 2018 package. As per Fortune, Glass Lewis wrote, “It is clear that the quantum, on a realizable and granted basis, outpaces all other pay packages.”
FAQs
Q1. Why did Elon Musk call ISS and Glass Lewis “corporate terrorists”?Musk called them “corporate terrorists” because he thinks their shareholder voting recommendations have too much influence and are not based on real ownership or company interests.
Q2. How much is Elon Musk’s Tesla pay package worth?
If he meets Tesla’s goals, Musk’s pay package could give him about $1 trillion over 10 years.
