Tesla Major Shareholder Backs Musk’s $1T Compensation Plan

The State Board of Administration of Florida (SBA), a key Tesla (TSLA) investor, has publicly endorsed CEO Elon Musk's ambitious $1 trillion compensation package for 2025. In an SEC filing Monday, the pension fund confirmed it would support the proposal—mirroring its 2018 approval of Musk's performance-based award.

Controversy surrounds the package, with critics decrying its scale while proponents argue it secures Musk's long-term commitment. Tesla Chair Robyn Denholm underscored Musk's irreplaceable role, warning of significant valuation risks should he depart.

Shareholders will decide the package's fate at Tesla's November 6, 2025 Annual Meeting. The 423.7 million-share proposal includes twelve tranches tied to escalating market cap targets ($2T-$8.5T) and operational milestones spanning vehicle deliveries, autonomous driving adoption, and robotics deployment. Full vesting could dilute outstanding shares by approximately 12%.