Shareholder Group Urges Nasdaq Probe Into Tesla $29B Musk Equity Grant

The SOC Investment Group, representing pension funds tied to over two million union members and Tesla shareholders, has formally requested Nasdaq to investigate Tesla's recent $29 billion equity award to CEO Elon Musk, arguing it circumvented shareholder approval and violated compensation rules. The group contends that the 2019 Equity Incentive Plan, under which the award was granted, explicitly excluded Musk, and that this new grant effectively expanded the plan's coverage without a required shareholder vote. Critics have also highlighted the lack of hard performance targets in the award, labeling it a "fog-the-mirror" grant that vests simply if Musk remains in his leadership role. SOC has further raised concerns about the independence of Tesla's board, pointing to the reelection of directors with close ties to Musk and prior governance practices that may not prioritize shareholder interests. While some analysts have viewed the package as a move to secure Musk's leadership and potentially support Tesla’s stock price, the compensation continues to face scrutiny, including ongoing litigation following the overturning of Musk’s prior $56 billion award. The SOC group is also advocating for broader governance reforms and labor rights policies at Tesla amid this controversy.