Overview
- SpaceX’s confidential IPO paperwork, described Wednesday in a Reuters report, says Elon Musk can only be removed as CEO and chair by a vote of Class B shareholders.
- Class B stock carries 10 votes per share and Musk is set to control it after the listing, which makes any attempt to oust him depend on his own consent.
- The company plans a dual-class setup with Class A shares for the public and Class B super-voting shares for insiders, concentrating board elections in Musk’s hands.
- The filing warns prospective investors that this structure will limit or even preclude their ability to influence corporate matters and the election of directors.
- Corporate-governance experts call the clause unusual because boards typically fire CEOs, and the draft filing remains subject to SEC review that could lead to changes.