(Reuters) -California Public Workers’ Retirement System’s (CalPERS) CEO, Marcie Frost, stated the company plans to oppose Tesla (NASDAQ:) Chief Govt Elon Musk’s $56 billion pay bundle, CNBC reported on Wednesday.
“We do not believe that the compensation is commensurate with the performance of the company,” Frost stated in an interview with CNBC.
CalPERS is among the many prime 30 traders in Tesla and owns 9.5 million shares, based on LSEG knowledge. The U.S. pension fund didn’t instantly reply to a Reuters request for remark.
In a submit on social media platform X, Musk responded by saying that the U.S. pension fund “broke the deal.” “What she’s saying makes no sense, as all the contractual milestones were met. CalPERS is breaking their word,” he wrote within the submit.
Proxy advisory agency Glass Lewis had on Saturday urged Tesla shareholders to reject the pay bundle.
Musk’s pay bundle, the biggest in company America, has no wage or money bonus and units rewards based mostly on Tesla’s market worth rising to as a lot as $650 billion over the subsequent 10 years from 2018.
A Delaware decide rejected the bundle in January after terming the compensation “an unfathomable sum” that was unfair to shareholders.
Final month, Tesla requested shareholders to reaffirm their approval for Musk’s pay bundle that was set in 2018.
Individually, Egan-Jones Proxy Companies really helpful traders vote to ratify Musk’s pay bundle. In an electronic mail despatched by an organization supervisor on Wednesday, Egan-Jones wrote that “the continuation of this compensation plan is critical for maintaining Musk’s leadership and motivation, which are essential for Tesla’s sustained growth and innovation.”
Egan-Jones additionally stated it’s recommending that traders again Tesla’s proposal to switch its state of incorporation to Texas from Delaware. The transfer “aligns legal and operational bases, potentially enhancing operational efficiency and corporate culture,” based on the e-mail.
