New York City Comptroller Mark Levine has stated that the unprecedented level of control Elon Musk is set to wield over SpaceX represents a new peak in the disregard for the rights of ordinary shareholders.
Levine remarked, "I understand we are in an era where founders desire more control. But Musk's plans for SpaceX go 'far beyond anything we have seen before.'"
"It is without precedent," he said.
SpaceX is set to go public this week, with this record-breaking IPO being fervently pursued by eager investors. However, to invest in this company, one must accept its governance structure: Musk holds approximately 80% of the voting power while simultaneously serving as Chief Executive Officer, Chief Technology Officer, and Chairman of the board.
For large investors tracking indices, avoiding an investment in SpaceX is not a simple matter. The company has already forced the market to adapt around it.
Levine, who oversees roughly $300 billion in active and passively managed portfolios within New York City's public pension funds, stated that excluding SpaceX is a "very complex" issue.
"We have never shied away from a single company," he said. "We have only ever done exclusions at the industry level," therefore, blacklisting SpaceX "is unprecedented for us, and it is not easy."
Levine indicated that he consequently plans to advocate from within for more democratic corporate governance.
He said that Musk must not be allowed to "strip" shareholders of their power, adding that investment professionals in New York have told him they hope he will "continue to fight for this."
A request for comment was sent to SpaceX via email, but no response was received.
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