Top Pension officials from New York and California have written to SpaceX CEO Elon Musk, expressing concern over the \u201cextreme\u201d governance structure of the commercial space flight company ahead of its public listing.<\/p>\n
Comptrollers Express Concern<\/p>\n
The officials objected to his power over SpaceX, voting control over the stock and his de facto power<\/a> over the company CEO\u2019s removal, the report said. The company will adopt a dual-class share structure, with Musk\u2019s Class B shares each worth 10 regular shares, holding significant voting power.<\/p>\n The report said that SpaceX could adopt a controlled-company status, which would allow it to bypass requirements for a majority-independent board, or independent compensation and nominating committees during Musk\u2019s tenure as CEO, chief technology officer and chair.<\/p>\n New York and California pension funds would become shareholders in the commercial space flight giant through passive allocations following its listing, the report said. Officials urged SpaceX to employ a one-vote, one-share structure, as well as separate the Chair and CEO roles.<\/p>\n SpaceX\u2019s IPO, Starship Plans<\/p>\n Meanwhile, Musk shared that figuring out how to create reusable heat shields, as well as developing reliable engines for the Starship rocket, remains a crucial challenge for SpaceX<\/a>.<\/p>\n Check out more of Benzinga’s Future Of Mobility coverage by following this link<\/a>.<\/p>\n Photo courtesy: Shutterstock<\/p>\n