California pension fund opposes Elon Musk’s multibillion-dollar pay package

Another Tesla shareholder has come out against Elon Musk's multibillion-dollar pay package, suggesting that the billionaire should shift his focus to exploring Mars.

Growing opposition

The list of Tesla investors opposing Elon Musk's hefty compensation is expanding. CalSTRS's chief investment officer, Chris Ailman, expressed the fund's dissent.

Public disapproval

Days before the annual shareholder meeting, Christopher Ailman, the chief investment officer of the California State Teachers' Retirement System, publicly voiced the fund's objection to Musk's multibillion-dollar compensation package. The package, initially valued at $56 billion in 2018, had decreased to about $46 billion by the end of the week.

Call for focus

Ailman emphasized the need for Musk to concentrate on his ventures, proposing a more reasonable salary. He criticized the compensation package as excessive and questioned the fairness of the process used to determine it.

Support for Musk's vision

While praising Musk's role in developing Tesla, Ailman suggested that professional managers should handle the company's operations to allow Musk to pursue his interests, particularly his ambition to explore Mars.

Investor sentiment

Despite Musk's diverse endeavors, Ailman stressed that Tesla is fundamentally an automotive company, and its performance should align with that reality. He highlighted concerns about Musk's governance and behavior but expressed a desire for him to remain involved with the company.

Upcoming vote

The results of the investor vote on Musk's compensation package will be disclosed soon. Analysts predict that the package may not receive approval, potentially impacting Tesla's stock value. Proxy advisors are recommending investors to vote against the package, a sentiment likely to be echoed by Tesla's passive investors.

Steadfast investment

CalSTRS, despite its opposition to Musk's compensation, has no intentions of selling its Tesla shares. Ailman reaffirmed the fund's commitment to holding onto its investments, acknowledging Musk's ambition to push boundaries, including his aspiration to reach Mars.

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By: esnodgrass@businessinsider.com (Erin Snodgrass)
Title: California pension fund opposes Elon Musk’s multibillion-dollar pay package
Sourced From: www.businessinsider.com/major-tesla-shareholder-opposes-elon-musk-pay-package-2024-6
Published Date: Tue, 11 Jun 2024 01:03:29 +0000