Calpers, the largest state public pension fund in the US, is tentatively planning to vote against a proposed $56 billion pay package for Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk. This move signals opposition from a significant investor.
Marcie Frost, CEO of the California Public Employees’ Retirement System, stated in a Wednesday interview with CNBC, “As of today, minus the conversation that has yet to happen with Tesla, we would not be voting in favor of that proposal. We do not believe that the compensation is commensurate with the performance of the company.”
Frost’s statement adds to the growing resistance against the controversial pay proposal, which Calpers initially supported when it was crafted in 2018. Shareholder adviser Glass Lewis & Co. has also urged Tesla investors to reject the package, citing its “excessive size” and potential dilution upon exercise.
Calpers owns approximately 9.5 million Tesla shares, ranking it among the electric vehicle maker’s 30 largest investors, according to Bloomberg data.
Musk criticized Frost’s remarks, posting on his social media platform X that the pension fund “is breaking their word.” He added, “What she’s saying makes no sense, as all the contractual milestones were met.”
Earlier this year, a Delaware judge voided Musk’s 2018 pay deal, stating that investors were not fully informed of key details.
Tesla’s board has decided to put the pay package up for another vote at its annual shareholders meeting on June 13. If rejected, Musk has threatened to develop some products outside of Tesla.
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