California Pension Fund Opposes Elon Musk's $56B Tesla Pay Package

By Patricia Miller


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Major shareholders oppose Elon Musk's $56B pay package at Tesla, raising governance concerns and potential impact on stock value.

Silhouette of Elon Musk and Tesla Badge against Red Background.

What You Need To Know

The Chief Investment Officer of the California State Teachers' Retirement System (CalSTRS) is voting against Tesla CEO Elon Musk's $56 billion pay package, calling it unfair and excessive compared to average worker pay. CalSTRS, a long-time Tesla shareholder, believes the stock is overvalued.

While major shareholders like Norway’s sovereign wealth fund also oppose the proposal, the fund does not plan to sell its Tesla shares. The decision could impact Musk's involvement in Tesla, with suggestions for him to delegate more operational tasks and focus on his other ventures like space exploration.

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Why This Is Important for Retail Investors

  1. Impact on Stock Value: The rejection of Elon Musk's pay package could potentially affect Tesla's stock price, which could impact the portfolios of retail investors holding Tesla shares.

  2. Governance Concerns: The stance taken by major institutional shareholders highlights governance issues within the company, raising red flags for retail investors about the leadership and decision-making processes at Tesla.

  3. Investor Sentiment: The opposition to Musk's pay package might influence market sentiment towards Tesla, potentially leading to fluctuations in the stock price that could impact retail investors' investment decisions.

  4. Long-Term Strategy: Musk's potential shift in focus towards other ventures could impact Tesla's long-term strategy and operations, potentially affecting the company's performance and, consequently, the investment returns for retail investors.

  5. Industry Reputation: The controversy surrounding Musk's pay package and governance issues at Tesla could impact the company's reputation within the industry, which could have implications for its competitive positioning and potential investment opportunities for retail investors in the electric vehicle sector.

Read What Others Are Saying

CNBC: California pension fund opposes 'ridiculous' Elon Musk pay package at Tesla

Reuters: Tesla turns to Musk's small shareholder fans to back $56 billion payday

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This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of, has not been paid for the production of this piece by the company or companies mentioned above.

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