New Mexico State Investment Council, Educational Retirement Board Vote Against Tesla CEO $1 Trillion Pay Package

From the Office of New Mexico State Treasurer:

SANTA FE — The New Mexico State Investment Council (SIC) announced that it has directed its proxy, Northern Trust Asset Management, to vote against Tesla’s $1 trillion pay package proposed for CEO Elon Musk and against the reelection of board members Ira Ehrenpreis, Joe Gebbia, and Kathleen Wilson-Thompson.

The decision comes as SIC uses its authority as Tesla shareholder to vote against internal Tesla proposals that are not in the economic or financial interest of Tesla shareholders.

New Mexico State Treasurer Laura M. Montoya, an ex officio member of the SIC, requested that the matter be included on the agenda for a vote at the SIC’s Oct. 28 meeting, despite efforts to block this item from being included in the meeting agenda.

After a comprehensive debate, Treasurer Montoya moved to vote against the trillion-dollar pay package and the reelection of Tesla board members Ehrenpreis, Gebbia, and Wilson-Thompson. State Land Commissioner Stephanie Garcia Richard seconded the motion, which passed in a 6-3 vote in favor of opposing the pay package and reelection proposals. Treasurer Montoya is also an ex officio member of the Educational Retirement Board (ERB), which convened on Friday, Oct. 24, to discuss Tesla shareholder voting.

Treasurer Montoya emphasized that the proposed $1 trillion pay package performance award sets weak and insufficient performance targets for Musk, subject to discretion by a Board dominated by Musk’s personal allies.

“Pay packages, regardless of who may receive them, should be based on performance,” Treasurer Montoya said. “In this case, the evidence is clear: Tesla’s operational and financial performance has been negative and highly volatile. Elon Musk’s performance at Tesla does not justify receiving the largest pay package in corporate history.”

The SIC, which oversees New Mexico’s nearly $68 billion sovereign wealth fund, has Tesla shares predominantly in an index fund. Northern Trust Asset Management has historically voted SIC’s proxy votes. SIC does not currently have a proxy voting policy. Treasurer Montoya stated that proxy voting should align with best governance practices, transparency, and in New Mexico’s shareholders’ best interests.

“When SIC entrusts an external entity to vote on its behalf, it is essential that we remain engaged and ensure SIC has a direct voice in how priorities are upheld and how votes are cast. That is the only way to ensure our responsibility as fiduciaries,” Treasurer Montoya said.

The SIC governance committee will be reviewing and researching best practices for proxy voting to strengthen transparency and oversight.

ERB voted through its proxy advisor, Institutional Shareholder Services (ISS), against the proposed pay package and against one board member up for reelection, Ira Ehrenpreis. ERB manages $19 billion in retirement assets for the state’s public education workers. ISS has also released its Proxy Analysis & Benchmark Policy Voting Recommendations.

Treasurer Montoya, as part of a coalition of state treasurers, public finance officials, and institutional investors, signed onto a letter earlier this month urging Tesla shareholders to vote against the $1 trillion compensation package for Musk and the reelection of Tesla board members Ehrenpreis, Gebbia, and Wilson-Thompson.

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