The California Public Employees’ Retirement System (Calpers) will vote against Tesla Inc.’s proposed $1 trillion compensation agreement for CEO Elon Musk. The decision from the nation’s largest public pension fund deals a significant blow to the automaker’s plan to secure one of the most substantial pay packages in corporate history.
In a formal statement, a Calpers spokesperson criticized the scale of the proposal, noting, “The CEO pay package proposed by Tesla is larger than pay packages for CEOs in comparable companies by many orders of magnitude.” The fund also expressed concern that the agreement “would further concentrate power in a single shareholder.”
Calpers, which holds approximately 5 million Tesla shares, has a record of challenging Musk’s compensation. Last year, Calpers CEO Marcie Frost opposed a proposed $56 billion pay package for Musk. The fund also objected to a 2018 agreement valued at over $50 billion, which was later voided by a Delaware court. Tesla is currently appealing that decision.
Calpers, the largest public pension plan in the US, is planning to vote against Elon Musk’s $1 trillion Tesla compensation agreement https://t.co/HPcFl1tI3Q
— Bloomberg (@business) October 30, 2025Read: Tesla Proposes $87.75B Pay Package for Elon Musk, Eyes Trillionaire Status
The upcoming shareholder vote on the new package is scheduled for Tesla’s annual meeting on November 6 in Austin, Texas.
The $1 trillion compensation plan is structured as a 10-year agreement. It requires Musk to meet specific performance milestones to receive the full payout. A key component of the deal could grant Musk additional shares, enabling him to maintain at least a 25% ownership stake in the electric vehicle company.
Musk has actively campaigned for investor support, using Tesla’s recent earnings call to urge a “yes” vote and criticize shareholder advisory firms that have recommended against the package. The opposition from a influential, long-term investor like Calpers represents a major hurdle for Tesla’s leadership ahead of the critical vote.
