New York, California pension leaders oppose SpaceX IPO governance plan

Leaders of three major U.S. public pension systems urged SpaceX CEO Elon Musk to abandon governance provisions they said would sharply limit shareholder rights ahead of the company’s planned public listing, according to a May 13, 2026, letter reviewed by Reuters. New York State Comptroller Thomas DiNapoli, New York City Comptroller Mark Levine and CalPERS CEO Marcie Frost objected to reported provisions giving Musk voting control, veto power over his removal as CEO and protections from shareholder litigation, including mandatory arbitration. SpaceX is expected to seek $75 billion in what could be the largest IPO on record, at a $1.75 trillion valuation. The officials, whose systems oversee more than $1 trillion in retirement assets, also cited risks from Musk’s roles at Tesla, X, xAI, the Boring Company and Neuralink. They urged SpaceX to adopt one-share, one-vote governance or sunset super-voting shares within seven years, install a majority-independent board, separate the CEO and chair roles and require independent approval for related-party transactions. SpaceX did not respond to Reuters’ questions.