Finance
US Labor, Advocacy Groups Urge States to Reject Tesla's $29 Billion Musk Pay
Published by Global Banking & Finance Review®
Posted on August 21, 2025
2 min readLast updated: January 22, 2026
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Labor and advocacy groups urge rejection of Elon Musk's $29B pay package, citing risks to pension funds and lack of board independence.
Labor Groups Call on States to Reject Elon Musk's $29 Billion Pay Package
Opposition to Musk's Compensation Package
By Akash Sriram
Coalition of Labor and Advocacy Groups
(Reuters) -A coalition of U.S. labor unions and progressive advocacy groups urged state financial officers overseeing public pension funds to oppose fresh pay awards for Tesla CEO Elon Musk, warning the excessive cost poses risks to workers' retirement savings.
Legal Background on Musk's Pay
A mix of labor unions and liberal advocacy groups, including the American Federation of Teachers and MoveOn, urged state officials to press asset managers to reject Musk's new pay plans and push for stronger board independence at the EV maker, in a letter exclusively shared with Reuters.
Impact on Tesla Shareholders
Many states manage pension funds for teachers and other employees, which are among the largest U.S. investors.
Tesla and Musk did not immediately respond to requests for comment.
The appeal comes amid a legal saga over Musk's record pay package. In January last year, Delaware Chancellor Kathaleen McCormick voided Musk's 2018 package, then valued at about $56 billion, calling it an "unfathomable" award by a conflicted board.
Tesla this month granted Musk 96 million new shares valued at about $29 billion as a good-faith interim payment while his 2018 pay package remains under appeal.
The Tesla board said to shareholders that retaining Musk is essential, as his leadership is critical for the company's transition from an EV maker to a robotics and AI-focused firm.
In June last year, Tesla shareholders ratified the payout and approved relocating the company's legal home to Texas, but the court case remained unresolved, with McCormick later allowing for appeals that could extend for months.
The groups urged officials to oppose any new pay package and to vote against directors who fail to show independence from Musk.
"Shareholders in Tesla shouldn't be taking dilutions so that the wealthiest man in the world can be handed additional Tesla shares," some of the advocates said via email.
Tesla has not yet published a proxy outlining the ballot items at the next annual meeting, but the groups expect the issue to be included.
(Reporting by Akash Sriram in Bengaluru; Editing by Vijay Kishore)
Key Takeaways
- •Labor unions and advocacy groups oppose Musk's $29 billion pay package.
- •Concerns over risks to public pension funds are raised.
- •Tesla's board independence questioned by advocacy groups.
- •Musk's 2018 pay package remains under legal appeal.
- •Tesla shareholders previously ratified Musk's payout.
Frequently Asked Questions about US labor, advocacy groups urge states to reject Tesla's $29 billion Musk pay
1What are the labor groups urging state financial officers to do?
The coalition of labor unions and advocacy groups is urging state financial officers to oppose new pay awards for Tesla CEO Elon Musk.
2What is the value of the new shares granted to Musk?
Tesla granted Musk 96 million new shares valued at about $29 billion as a good-faith interim payment while his previous pay package remains under appeal.
3Why did the Delaware Chancellor void Musk's 2018 pay package?
The Delaware Chancellor voided Musk's 2018 pay package, which was valued at about $56 billion, citing concerns over its approval process.
4What do the advocacy groups want from asset managers?
The advocacy groups want asset managers to reject Musk's new pay plans and to vote against directors who do not show independence from him.
5What was the outcome of the Tesla shareholders' vote in June last year?
In June last year, Tesla shareholders ratified Musk's payout and approved relocating the company's legal home to Texas, although the court case regarding his pay package remained unresolved.
