**Elon Musk Warns Tesla Shareholders: Approve $1 Trillion Payday or Find a New CEO**
*Published: October 20, 2025, 3:45 p.m. ET*
Elon Musk has issued a bold warning to Tesla shareholders: approve his proposed $1 trillion compensation package, or start looking for a new CEO. The 54-year-old billionaire took to X (formerly Twitter) to express his frustrations over the controversy surrounding what could be the largest pay package in corporate history.
### The $1 Trillion Pay Package
Last month, Tesla’s board of directors proposed a plan that could add as much as $1 trillion to Musk’s wealth. Under this plan, Musk would receive up to 12% of Tesla’s stock—worth approximately $1 trillion—if the company meets ambitious targets over the next decade. These targets include achieving a market capitalization of $8.5 trillion, along with several other milestones.
Currently, Tesla’s market value sits at about $1.1 trillion, and Musk owns roughly 13% of the company’s outstanding shares.
### Former Tesla Employee Voices Concerns
The proposal sparked backlash from various quarters, including from Romain Hedoui, a former Tesla employee and investor. Hedoui criticized the pay package, arguing that it was excessively generous and called for hiring a CEO who would not demand such “absurd” compensation.
On X, Hedoui wrote:
*”If Tesla’s market capitalization only reaches $2 trillion within the next 10 years, the proposed pay package would pay the CEO roughly $20 billion for this ‘achievement.’ This equates to about 3.8% annual growth from today’s share price.*
*That would barely beat inflation and would underperform the S&P 500 considerably.”*
He continued,
*”Sorry Tesla, some of us, including Institutional Shareholder Services (ISS), don’t think underperforming the S&P 500 this much justifies paying someone $20 billion worth of company value. As a shareholder, I don’t want Tesla to overpay its CEO.*
*I strongly believe that the 2025 pay package proposal is excessive, and other competent CEOs could grow Tesla just as much with far less political drama and at a lower cost to investors.”*
### Elon Musk’s Response: A Threat to Step Down
Musk clearly took offense to these criticisms. He fired back on X, saying:
*”Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla?*
*It won’t be me.”*
His remarks triggered a heated reaction across social media. Critics condemned the compensation package as “absolutely ridiculous,” and some argued that the idea Tesla could not survive without Musk was insulting to the company’s employees.
One user accused Musk of blackmail, stating,
*”Musk is now actively engaged in blackmailing his shareholders by demanding this pay package or threatening to leave.”*
### Supporters and Detractors Weigh In
Top proxy advisory firm Institutional Shareholder Services (ISS) has opposed the compensation plan, citing “unmitigated concerns surrounding the special award’s magnitude and design.” Similarly, proxy advisor Glass Lewis expressed worries about potential share dilution and other aspects of the plan that “warrant significant concern.”
On the other hand, Tesla Chair Robyn Denholm has voiced strong support for Musk. In a letter to investors, she said:
*”We believe Elon’s singular vision is vital to navigating this critical inflection point. We also recognize the formidable nature of this undertaking and, as a result, the importance of having a leader who is not only willing and capable but eager to meet this challenge.”*
### Musk’s Financial Position
Despite the controversy, Musk’s wealth continues to soar. Earlier this month, his net worth surpassed the half-trillion mark, putting him approximately $150 billion ahead of Oracle co-founder Larry Ellison, the world’s second-richest person.
As Tesla shareholders prepare to vote on Musk’s compensation package, the debate over his pay and leadership underscores the high stakes involved in steering one of the world’s most valuable companies into the future.
https://radaronline.com/p/elon-musk-quits-tesla-stepping-down-from-company-trillion-pay-day/
