Oct 17 (Reuters) - Proxy advisory firm Institutional

Shareholder Services on Friday urged Tesla shareholders

to vote against CEO Elon Musk's proposed $1 trillion performance

award, citing concerns over excessive compensation and

governance risks.

The ISS recommendation adds pressure on Tesla's board ahead

of a closely watched November 6 shareholder meeting and renews

scrutiny of Musk's compensation after a Delaware court earlier

voided his $56 billion pay package.

Last month, Tesla's board proposed a $1 trillion

compensation plan for Musk in what it described as the largest

corporate pay package in history, setting ambitious performance

targets and aiming to address his push for greater control over

the company.

ISS said that while the board's goal is to retain Musk

because of his "track record and vision," the 2025 pay package

"locks in extraordinarily high pay opportunities over the next

ten years" and "reduces the board's ability to meaningfully

adjust future pay levels."

The proxy adviser cited the "astronomical" size of the

proposed grant, design features that could deliver very high

payouts for partial goal achievement, and potential dilution for

existing investors.

Tesla did not immediately respond to a request for comment.

ISS valued the stock-based award at $104 billion, higher

than Tesla's own estimate of $87.8 billion.

The grant would vest only if Tesla reaches market

capitalization milestones up to $8.5 trillion and operational

targets including delivery of 20 million vehicles, one million

robotaxis and $400 billion in adjusted core earnings.