SOC Investment Group requested that Nasdaq investigate Tesla's $29 billion equity grant to Elon Musk, citing compliance and shareholder transparency concerns. SOC represents pension funds sponsored by a coalition of unions representing over two million members. The August 19, 2025 letter to Nasdaq deputy general counsel Erik Wittman alleged that Tesla's board circumvented Nasdaq listing rules by awarding a "2025 CEO Interim Award" that should have required a shareholder vote. Tesla's board approved the award under the 2019 Equity Incentive Plan largely as compensation for the previously awarded and overturned 2018 CEO Performance Award. The 2018 award was twice overturned by the Delaware Chancery Court and is under appeal.
In the latest twist in a long-running battle over Elon Musk's compensation at Tesla, the SOC Investment Group has requested that Nasdaq formally investigate "and take appropriate remedial action" against Tesla for its recent $29 billion equity grant to the CEO. In a letter to Nasdaq, the group raised concerns about compliance with executive compensation rules and shareholder transparency. The SOC group, formerly known as the CtW Investment Group, works with pension funds sponsored by a coalition of unions representing over two million members;
In a letter dated August 19, 2025, addressed to Erik Wittman, deputy general counsel and head of enforcement at Nasdaq, SOC expressed "serious concerns" about Musk's new compensation package. Specifically, SOC said it was concerned that Tesla's board circumvented Nasdaq listing rules when awarding Musk a "2025 CEO Interim Award," disclosed earlier this month. The group claims this equity award should have required a shareholder vote, as stipulated under Nasdaq's rules, given that it materially amended compensation plans.
#elon-musk #tesla-executive-compensation #nasdaq-investigation #shareholder-rights #corporate-governance
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