According to foreign media reports, on May 29, Marcie Frost, CEO of the California Civil Servant Retirement System (CalPERS), said that the agency plans to oppose Tesla CEO Elon Musk’s $56 billion salary plan.
Frost said in an interview: “We believe this salary standard is not commensurate with the company’s performance.
“, According to LSEG data, CalPERS is one of Tesla’s top 30 investors, holding 9.
5 million shares of the company.
CalPERS did not immediately respond to a request for comment.
, Musk responded in a post on social media platform X that CalPERS “broke the agreement.
” Musk said: “What she (Frost) said makes no sense because all contract milestones have been reached.
CalPERS is breaking his word.
“, Photo source: Tesla, on May 25, acting consulting firm Glass Lewis also urged Tesla shareholders to veto Musk’s salary plan.
Tesla responded to Glass Lewis in a separate filing on May 29, saying Musk was creating wealth for Tesla shareholders and made significant “personal investment.
” Musk’s salary plan is the highest among American companies.
He does not directly receive wages or cash bonuses, but sets rewards based on Tesla’s market value.
To receive these rewards, Tesla’s market value needs to rise to as much as US$650 billion in the next 10 years starting in 2018.
A judge in the U.S. state of Delaware rejected the plan in January this year, saying the compensation amount was “incalculable” and unfair to shareholders.
Last month, Tesla asked shareholders to reapprove Musk’s 2018 salary plan.
Unlike CalPERS, agency services firm Egan-Jones Proxy Services recommended that investors vote to approve Musk’s compensation plan.
An Egan-Jones manager wrote in an email sent May 29:”Continuing to execute this compensation plan is critical to maintaining Musk’s leadership and motivation, which is also critical for Tesla’s continued growth and innovation.
“, Egan-Jones also said it advised investors to support Tesla’s proposal to move the company’s registration from Delaware to Texas.
The email stated that the move “aligns the legal and operational foundations and has the potential to improve operational efficiency and corporate culture.
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