Elon Musk is asking Tesla shareholders to approve a $1 trillion pay package for himself this Thursday, but he won’t get any help from New Mexico in doing it.
The New Mexico State Investment Council (SIC), which manages state permanent funds from oil and gas royalties and tobacco litigation settlements, officially directed its proxy to vote against Musk’s compensation and the re-election of board members on the company’s shareholder ballot this week.
The decision, driven by State Treasurer Laura M. Montoya, was unusual for the state body which holds stock in many companies, including Tesla, but does not normally direct how to vote on shareholder decisions.
Montoya argued that the $1 trillion award set “weak and insufficient performance targets” for Musk, adding that the package was backed by a board allegedly “dominated by Musk’s personal allies.” She explicitly criticized the CEO’s tenure, stating: “Tesla’s operational and financial performance has been negative and highly volatile. Elon Musk’s performance at Tesla does not justify receiving the largest pay package in corporate history.”
The motion to oppose the pay package and board re-elections passed the SIC in a decisive 6-3 vote. Separately, the Educational Retirement Board (ERB), which manages assets for public education workers, also voted against the compensation package.