**Jim Cramer Backs Elon Musk’s $1 Trillion Tesla Pay Package Amid Proxy Firm Opposition**
Jim Cramer, host of CNBC’s *Mad Money*, has voiced strong support for Tesla CEO Elon Musk’s controversial $1 trillion compensation package, which is set to be put to a shareholder vote on November 6, 2025.
Cramer argues that Musk is one of the few CEOs truly “worth it,” emphasizing Tesla’s reach beyond just electric vehicles. He highlighted the company’s pioneering efforts in robotics, Full Self-Driving (FSD) technology, and advanced battery development as justification for backing the package.
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### Musk’s Rationale for the Pay Package
During Tesla’s Q3 2025 earnings call, Musk explained the need for the pay plan, stating he requires sufficient voting control to oversee and safely manage Tesla’s growing Optimus robot fleet. According to Musk, securing this control is crucial to avoid being ousted by activist shareholders who may not understand the intricacies of Tesla’s technology and vision.
“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,” Musk said, directly criticizing proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis. He referred to these firms as “corporate terrorists” for their opposition.
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### Why Jim Cramer Supports Musk’s Pay Package
Cramer defended Musk’s compensation as justified, highlighting the CEO’s leadership in artificial intelligence and self-driving car technology. On social media platform X, Cramer described Musk as “real smart,” regardless of differing personal opinions about him.
Cramer also pointed out that, unlike companies like Meta—where CEO Mark Zuckerberg has control through a dual-class stock structure—Tesla does not have this system because Musk was not the company’s founder. He believes this pay package serves as an alternative mechanism to grant Musk the control he needs to execute his ambitious vision.
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### Opposition from Proxy Advisory Firms
Both ISS and Glass Lewis have recommended Tesla shareholders vote against the $1 trillion package. These firms guide institutional investors on governance matters and have significant influence over shareholder voting outcomes.
Musk expressed concern about their sway, worrying about being removed after developing powerful technologies without having adequate control over their future use. He clarified that he does not seek complete control but rather a balance—enough voting power to protect Tesla’s strategic direction while still allowing for accountability.
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### Market Sentiment on Tesla Stock
Meanwhile, Wall Street analysts hold a Hold rating on Tesla stock, with an average price target that suggests a potential downside of approximately 14.7%.
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The upcoming shareholder vote on November 6, 2025, will be critical in determining whether Elon Musk secures the compensation package that he believes is necessary for safeguarding Tesla’s innovative future.
https://coincentral.com/cramer-tells-tesla-shareholders-give-musk-his-1-trillion-pay-package/