The California Public Employees’ Retirement System, the New York State Common Retirement Fund and the New York City Comptroller’s Office (which oversees the city’s five public pension funds) are raising objections to SpaceX’s proposed governance structure as the aerospace giant prepares for its initial public offering this summer.
In a letter to SpaceX executives, CalPERS CIO Marcie Frost, NYC Com...
The strongest version of this narrative is that institutional investors are sounding a legitimate alarm about corporate governance risks in SpaceX’s IPO. The dual-class share structure, arbitration clauses, and Texas reincorporation collectively create a fortress around executive control, making it nearly impossible for public shareholders to influence governance or hold leadership accountable. The pension funds’ concerns are grounded in well-documented risks of such structures—historically, the...