SOC Investment Group represents pension funds tied to more than two million union members and sent Nasdaq a letter alleging serious concerns about Tesla's $29 billion equity award to Elon Musk. SOC alleges Tesla's board improperly granted a 2025 CEO Interim Award under the company's 2019 Equity Incentive Plan, noting the plan explicitly excluded Musk when approved by shareholders and arguing that covering Musk is a material change requiring a shareholder vote under Nasdaq rules. The award replaces a struck-down $56 billion 2018 package, includes leadership and resale restrictions, and faces criticism for lacking performance targets. A counterclaim accuses SOC of acting as a political activist group without direct Tesla investments.
The SOC Investment Group, which represents pension funds tied to more than two million union members-many of whom hold shares in TSLA-sent a letter to the exchange citing "serious concerns" that the package sidestepped shareholder approval and violated compensation rules.
In its August 19 letter to Nasdaq enforcement chief Erik Wittman, SOC alleged that Tesla's board improperly granted Musk a " 2025 CEO Interim Award " under the company's 2019 Equity Incentive Plan.
The $29 billion package was designed to replace Musk's overturned $56 billion award from 2018, which the Delaware Chancery Court struck down, prompting Tesla to file an appeal to the Delaware Supreme Court.
This means that "If you're around and have enough breath left in you to fog the mirror, you get them," stated Brian Dunn, the director of the Institute for Comprehension Studies at Cornell University.
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