The California Public Employees’ Retirement System (Calpers), the largest U.S. public pension fund, said it will vote against Elon Musk’s proposed $1 trillion compensation package at Tesla, setting up a major challenge to one of the biggest pay deals in corporate history.
In a statement, Calpers said the proposal is “vastly greater than those of comparable companies” and warned that it would “further concentrate power in a single shareholder.” The fund, which owns roughly five million Tesla shares, has opposed Musk’s pay plans before — including his $56 billion award last year and a 2018 deal later overturned by a Delaware court and now under appeal.
Musk has been rallying investor support ahead of a Nov. 6 shareholder vote in Austin, urging backing for the 10-year, performance-linked plan that could lift his ownership to at least 25% if all targets are met. The outcome will be a key test of investor confidence in Tesla’s governance and Musk’s long-term leadership.
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Calpers’ opposition adds pressure on Tesla’s upcoming shareholder vote and renews scrutiny over corporate governance at the EV maker. The decision could influence other institutional investors weighing Musk’s leadership and Tesla’s long-term structure.
