October 25, 2025

In a spicy turn of events during Tesla’s Wednesday earnings call, CEO Elon Musk did not hold back. He called advisory firms Institutional Shareholder Services (ISS) and Glass Lewis “corporate terrorists”! Why so strong? 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 had been quiet for months after stepping down from the Department of Government Efficiency and having run-ins with President Donald Trump. But finally, he blew the whistle on proxy advisory firms, echoing similar criticism from ARK Invest CEO Cathie Wood. What’s the beef? Musk argued these firms wield too much power, especially over passive investors like index funds that hold shares for clients and vote big. 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.” To be clear, proxy advisory firms like ISS and Glass Lewis don’t vote directly at shareholder meetings. They only give recommendations, according to a report by Fortune. Big investors like BlackRock, Vanguard, and State Street make their own voting choices after doing their homework. In the past, ISS and Glass Lewis recommended rejecting Musk’s 2018 pay package, but shareholders approved it anyway—twice! Glass Lewis replied to Fortune by saying their job is to provide analysis and recommendations, leaving the final say to shareholders. ISS declined to comment. Tesla didn’t reply immediately to requests for comment. Now for the juicy part—Musk’s pay plan. His net worth is a staggering $455 billion. He says he needs an ownership stake "in the mid-20s approximately" (percent) to hit his Tesla goals. If he meets Tesla’s targets, the controversial pay package could shower him with about $1 trillion in 10 years! One big goal: Tesla’s market value must soar by over 500% to $8.5 trillion. ISS and Glass Lewis aren’t fans—they question the size of Musk’s pay and worry about other shareholders getting squeezed. Tesla argues that normal pay rules don’t apply because Musk’s goals are unlike any other company’s. Glass Lewis called Musk’s 2025 performance award “unprecedented,” roughly 33.5 times bigger than his 2018 package. They wrote, “It is clear that the quantum, on a realizable and granted basis, outpaces all other pay packages.” Wow! In short, Musk’s beef with ISS and Glass Lewis boils down to their outsized influence and questionable motives—at least in his eyes. As this saga unfolds, shareholders and market watchers will be keeping their eyes wide open.

Read More at Economictimes →

Tags: Elon musk, Tesla, Proxy advisory firms, Iss, Glass lewis, Pay package,