Tesla gets big nod on Musk comp package from Charles Schwab

Max Headroom 2025.11.06 3 min read

Tesla got a big nod of approval on CEO Elon Musk’s newly-proposed compensation package from Wall Street firm Charles Schwab after many shareholders believed the company was aiming to go against the new pay structure for its frontman.

Yesterday, we reported on many Tesla investors threatening to leave Charles Schwab as their broker after it was assumed the firm would vote against Musk’s pay package. The impression was that Schwab would utilize the same voting strategies as Glass Lewis and Institutional Shareholder Services (ISS), which both said they would vote against the new compensation package.

However, Schwab reached out to TESLARATI directly yesterday to confirm that it had not made any statement on which way it would vote. It then confirmed to us that it would vote to support Musk’s pay package:

UPDATE: a Charles Schwab spokesperson has reached out to TESLARATI with the following statement:

“Schwab Asset Management’s approach to voting on proxy matters is thorough and deliberate. We utilize a structured process that focuses on protecting and promoting shareholder value.… https://t.co/gG9iFhTgdJ

— TESLARATI (@Teslarati) November 4, 2025

The statement to TESLARATI said:

“Schwab Asset Management’s approach to voting on proxy matters is thorough and deliberate. We utilize a structured process that focuses on protecting and promoting shareholder value. We apply our own internal guidelines and do not rely on recommendations from Glass Lewis or ISS. In accordance with this process, Schwab Asset Management intends to vote in favor of the 2025 CEO performance award proposal. We firmly believe that supporting this proposal aligns both management and shareholder interests, ensuring the best outcome for all parties involved.”

Schwab also came out with a new statement just after that would be released to the public, stating that its delayed decision on the compensation package was due to its “structured process that focuses on protecting and promoting shareholder value.”

The firm uses a three-step program to determine its decision on a key vote like this one:

board composition and quality
actions a board has taken to drive strategy, deliver performance and manage relevant risks
clarity and accessibility of reporting on key issues

It then said it applies its own internal guidelines and does not rely on recommendations from other firms, like Glass Lewis or ISS.

It continued:

“In accordance with this process, Schwab Asset Management intends to vote in favor of the 2025 CEO performance award proposal. We firmly believe that supporting this proposal aligns both management and shareholder interests, ensuring the best outcome for all parties involved.”

Charles Schwab then received kudos from the Tesla community on their decision to vote for Musk to receive this compensation package.

The post Tesla gets big nod on Musk comp package from Charles Schwab appeared first on TESLARATI.

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