Jim Cramer Backs Elon Musk's Tesla Pay Package Amidst Shareholder Debate

Investor and "Mad Money" host Jim Cramer has weighed in on Tesla CEO Elon Musk's substantial pay package, urging a broader perspective on its justification. Cramer believes Musk deserves the compensation, citing Tesla's focus on future technologies like robotics and Full Self-Driving. His comments follow Tesla's Q3 2025 earnings call, where Musk emphasized the package's importance for his continued leadership and control over future projects, particularly the Optimus robot initiative.

Key Takeaways

• Jim Cramer supports Elon Musk's pay package, calling for a forward-looking view of Tesla's ambitions.

• Musk linked the pay package to maintaining voting control, essential for guiding future developments like the Optimus robot army.

• Shareholders are set to vote on Musk's compensation plan on November 6.

• A "Take Back Tesla" campaign, backed by unions and watchdogs, urges investors to reject the package, citing governance risks and Musk's alleged distractions.

• Tesla's board defends the package as crucial for retaining Musk and fostering innovation.

Cramer's Stance on Musk's Compensation

Jim Cramer, known for his often-shifting views on Tesla, stated that investors should not be "small-minded" about Elon Musk's pay. He argued that Tesla's true value lies in its pursuit of advanced technologies such as robotics and Full Self-Driving capabilities. "Give him his package," Cramer advised, emphasizing the long-term vision associated with Musk's leadership.

Musk's Concerns and the Optimus Project

During Tesla's Q3 2025 Earnings Call, Elon Musk articulated his concerns regarding the pay package, linking it directly to his ability to lead the company's ambitious projects. He expressed a need for sufficient voting control to prevent being ousted by "corporate terrorists" like proxy advisory firms ISS and Glass Lewis, especially as Tesla develops its "robot army." Musk stated he wouldn't feel comfortable overseeing the Optimus bots without a strong influence over the company's direction.

Shareholder Vote and Opposition

Tesla shareholders will have the final say on Musk's compensation plan during a vote scheduled for November 6. However, a new shareholder campaign, "Take Back Tesla," has emerged, urging investors to reject the proposed package. This coalition, comprising unions and watchdog groups, argues that the nearly $1 trillion package over ten years deepens governance risks and rewards distraction, pointing to Musk's involvement in other ventures. They contend that the package's value is astronomical and disproportionate compared to other CEOs.

Tesla's Defense and Board's Position

Tesla's board has defended the compensation package, asserting its necessity for retaining Musk and driving innovation in AI, robotics, and autonomous driving. They highlighted that past skepticism from proxy firms preceded significant market capitalization growth. New York City Comptroller Brad Lander, however, voiced opposition, citing concerns about Musk's "absentee CEO" status and Tesla's missed targets in its Robotaxi and Full Self-Driving programs. Musk has maintained that the package is not about accumulating wealth but about securing a controlling stake necessary for his continued leadership.