Labor Groups Oppose Elon Musk’s $29B Tesla Pay Package Over Shareholder Concerns

Labor unions and progressive organizations, including the American Federation of Teachers and MoveOn, are pressuring state financial officers to reject Elon Musk’s proposed $29 billion compensation package at Tesla (TSLA). The coalition warns that the massive equity grant could dilute shares, potentially harming public pension funds and retirees. A letter sent to state officials urges opposition to the plan and demands greater board independence.

The controversy follows a Delaware court’s January 2023 rejection of Musk’s original $56 billion pay deal, which was deemed "unfathomable" due to governance concerns. Despite the ruling, Tesla granted Musk 96 million shares as a provisional measure during the appeal process. Shareholders had previously approved both the compensation package and Tesla’s legal relocation to Texas in June 2023.