Categories: Social Media News

Devina Mehra: Musk will wield outsized power over SpaceX while public investors will have little say

In a traditional public company, a board of directors can fire a CEO if the latter fails to perform or acts against shareholder interests. Under SpaceX’s IPO terms, with the voting rights he has and his control of the super-voting blocks required to elect or dismiss board members, Musk essentially has the unilateral power to “elect, remove, or fill any vacancy” on the board. Hence, the board can never remove him.

Social Media Asia Editor

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