US' Largest Pension Fund To Vote Against Musk's $1 Trillion Tesla Pay Deal

California Public Employees' Retirement System, the largest public pension plan in the US, is planning to vote against Elon Musk's $1 trillion Tesla Inc. compensation agreement, delivering a setback for the company's plan to award one of the most lucrative pay packages in corporate America.

"The CEO pay package proposed by Tesla is larger than pay packages for CEOs in comparable companies by many orders of magnitude," a spokesperson for Calpers said in an emailed statement. "It would also further concentrate power in a single shareholder."

Calpers owns about 5 million shares in Tesla, according to data compiled by Bloomberg. 

Musk has been pushing the pay package ahead of a key shareholder vote at the automaker's annual meeting on Nov. 6 in Austin. The world's richest man spent the company's earnings call this month urging investors to back the plan and criticizing the shareholder advisory firms that have come out against it. 

His $1 trillion compensation agreement is a plan that spans 10 years and requires Musk to meet certain benchmarks to earn the full payout. Musk could also receive more shares, allowing him to own at least 25% of the automaker. 

Some of Musk's historical pay packages have also come under scrutiny. Last year, Calpers Chief Executive Officer Marcie Frost said the pension was against a proposed $56 billion pay package for Musk. The plan was also previously opposed to a 2018 agreement that was valued in excess of $50 billion. That pay package was eventually struck down by a Delaware court, although Tesla is appealing that decision.

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