Corporate governance experts and City investors have warned Elon Musk’s record-breaking $1tn pay deal could set a “dangerous precedent” that would pave the way for other companies to give their senior executives outsized packages.

More than 75% of the votes cast at Tesla’s shareholder meeting in Texas on 6 November were in favour of giving the Tesla chief executive the payout, which would also eventually see his shareholding in Tesla increase to around 25%.