CalPERS Joins Backlash Against Musk’s $1 Trillion Tesla Pay Plan — Retail Turns Bearish Ahead Of Shareholder Vote

• CalPERS, the largest U.S. public pension fund, will vote against Elon Musk’s $1 trillion Tesla pay plan, citing excessive scale and governance risks.
• Major investors and unions have lined up on both sides of the proposal, which faces a shareholder vote on Nov. 6 in Austin.
• Retail sentiment on Stocktwits turned bearish, with users warning of volatility and predicting Tesla shares could hover between $450 and $460 before the vote.

California Public Employees’ Retirement System (CalPERS), the largest U.S. public pension fund, said it will vote against Elon Musk’s proposed $1 trillion Tesla Inc. pay package, calling it “many orders of magnitude larger” than peer CEO compensation and warning it would “further concentrate power in a single shareholder.”

The fund, which owns about 5 million Tesla shares, said it remains concerned about the company's governance and accountability, Bloomberg reported. Shareholders will vote on the plan at Tesla’s Nov. 6 annual meeting in Austin.

Plan Overview And Musk’s Push

The 10-year package ties Musk’s compensation to performance milestones in market capitalization, earnings, and innovation. If all targets are met, Musk’s stake could rise to about 25%. 

Tesla's CEO has been pleading with investors to back the proposal, which he argues will tie his pay to long-term shareholder value. In the company's latest earnings call, Musk took aim at proxy advisers ISS and Glass Lewis, which recommended shareholders vote against the plan.

Who’s For And Against Musk’s Pay Plan

Against

- CalPERS – Opposes the plan’s size and potential concentration of control.

- New York State Comptroller Thomas P. DiNapoli – Urged rejection of the package and Tesla’s board slate, calling it “indefensible” and “not pay for performance.”

- New York City Comptroller Brad Lander and several state treasurers – signed a joint letter citing vague performance goals and excessive discretion by Tesla’s board.

- Coalition of unions and watchdogs (“Take Back Tesla”) – Led by the American Federation of Teachers and Public Citizen, calling the plan “outrageous” and overly dilutive.

- SOC Investment Group – Asked Nasdaq to investigate the board for bypassing shareholder approval on Musk’s earlier equity grants.

- Proxy Firms ISS and Glass Lewis – Oppose the plan, citing dilution and lack of independence.

- Ross Gerber (Co-founder of Gerber Kawasaki) – Called the proposal “insanity,” warning of further litigation.

For

- Robyn Denholm, Tesla Chair – said Musk “gets nothing unless shareholders enjoy exceptional returns,” warning of losing his leadership if the plan fails.

- Florida’s State Board of Administration (SBA) – Backed the plan as a “bold, performance-driven structure,” saying potential $7.5 trillion value creation outweighs dilution.

- Cathie Wood, ARK Invest – Predicted a “decisive” win, arguing retail investors will dominate the vote.

- Dan Ives, Wedbush Securities – Expects approval “by a wide margin,” calling Musk essential as “wartime CEO.”

- Gary Black, The Future Fund – Said there’s a “near-zero chance” of rejection.

- Tom Nash, Investor – Urged to “approve the trillion or lose the vision.”

- Jim Cramer, CNBC Host – Said Musk is “actually worth” the award.

- Tesla – Defended the plan as pay-for-performance, noting ISS and Glass Lewis were wrong on the 2018 award.

Stocktwits Users Flag ‘Lose-Lose’ Setup Before Vote

On Stocktwits, retail sentiment for Tesla was ‘bearish’ amid ‘normal’ message volume.

One user said the upcoming shareholder vote would be a “lose-lose” situation, warning that if Musk fails to win approval, he might walk away and trigger a stock collapse, while a successful vote could prompt institutional investors to trim their exposure. 

Another user suggested Tesla shares could “ping-pong between $450 and $460” in the days leading up to the vote.

Tesla’s stock has risen 14% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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