Elon Musk’s SpaceX is barreling toward what could be the biggest IPO in history, but the three largest US public pension systems demanded he rewrite the governance structure first.
New York State Comptroller Thomas DiNapoli, New York City Comptroller Mark Levine and California Public Employees’ Retirement System CEO Marcie Frost wrote to Musk on Wednesday, calling the planned IPO structure “extreme” and “the most management-favorable governance structure ever brought to the US public markets at this scale.”
The three oversee more than $1 trillion in retirement assets between them.
What The Pension Funds Want Stripped Out
The letter objects to a dual-class structure that would hand Musk roughly 80% voting control and a provision allowing only Class B shareholders to remove him as CEO or chair.
SpaceX would reportedly be the first major US company to require mandatory arbitration for shareholder claims under federal securities laws, killing class actions entirely.
SpaceX’s …
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