(Reuters) – The California Public Workers Retirement System (CalPERS) CEO Marcie Frost is planning to oppose Tesla CEO Elon Musk’s $56 billion pay package deal, CNBC reported on Wednesday.
“We don’t consider that the compensation is commensurate with the efficiency of the corporate,” Frost mentioned in an interview to CNBC.
CalPERS is among the many high 30 buyers of Tesla and owns 9.5 million shares, in keeping with LSEG information. The U.S. pension fund didn’t instantly reply to a Reuters request for remark.
In a publish on X, Musk responded by saying that the U.S. pension fund “broke the deal”. “What she’s saying is not sensible, as all of the contractual milestones had been met. CalPERS is breaking their phrase,” he wrote within the publish.
Proxy advisory agency Glass Lewis had on Saturday urged Tesla shareholders to reject the pay package deal.
Musk’s pay package deal, the biggest in company America, has no wage or money bonus and units rewards primarily based on Tesla’s market worth rising to as a lot as $650 billion over the following 10 years from 2018.
A Delaware decide rejected the package deal in January after terming the compensation as “an unfathomable sum” that was unfair to shareholders.
Final month, Tesla requested shareholders to reaffirm their approval for Musk’s pay package deal that was set in 2018.
(This story has been corrected to take away CalPERS CEO remark to CNBC on supporting the 2018 pay package deal after the pension fund clarified to Reuters it had voted in opposition to, in paragraph 3)
(Reporting by Harshita Mary Varghese and Niket Nishant)
