Cathie Wood Reportedly Says Elon Musk Deserves His Compensation Package, Calls Tesla CEO ‘Most Productive Visionary Human Being’

• During an interview on CNBC, Wood reiterated her support for Musk ahead of the crucial shareholder vote scheduled for Thursday afternoon.
• If Musk manages to achieve all his targets, Tesla’s market capitalization could rise to $8.5 trillion, from the current $1.52 trillion.
• Wood also dismissed concerns raised by proxy advisory firms Glass Lewis and Institutional Shareholder Services, which have urged shareholders to vote against the proposed compensation package for Musk.

Ark Invest founder and CEO Cathie Wood reportedly stated on Thursday that Tesla Inc. (TSLA) CEO Elon Musk deserves the $1 trillion compensation package.

During an interview with CNBC, Wood reiterated her support for Musk ahead of the crucial shareholder vote scheduled for Thursday afternoon.

“It’s a very big story run by the most productive visionary human being on Earth, so we think he deserves his pay package.”

— Cathie Wood, founder and CEO, Ark Invest

Tesla shares were down more than 1% in Thursday’s opening trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory at the time of writing.

Musk’s Moonshot

Wood added that if Musk manages to deliver the 41% compounded annual growth rate (CAGR) in Tesla’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the next ten years, it would catapult Tesla into “rarefied” territory.

“Never has a company anywhere near this size done anything like that,” she added.

If Musk manages to achieve all his targets, Tesla’s market capitalization could rise to $8.5 trillion, from the current $1.52 trillion.

Pay For Performance

Wood also dismissed concerns raised by proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS), which have urged shareholders to vote against the proposed compensation package for Musk.

“We don’t think ISS and Glass Lewis are doing the right kind of research to understand, to put into perspective what this company is doing, and therefore, what a compensation scheme should look like,” she said in the interview.

To achieve the full scope of the proposed compensation, Musk will need to meet a series of milestones, ranging from Tesla’s market capitalization to operational goals related to vehicle deliveries, Full Self-Driving (FSD) subscriptions, sales of Optimus humanoid robots, and robotaxis.

TSLA stock is up 14% year-to-date and 84% over the past 12 months.

Also See: Ray Dalio Says Fed’s Quantitative Easing Is ‘Stimulus Into A Bubble’

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