Major pension funds and shareholders are pressuring Tesla's board to improve governance and address Elon Musk's controversial behavior, which has negatively impacted Tesla's brand and investor confidence. Despite Musk stepping back from some activities, his association with political controversies and social issues continues to harm Tesla's reputation, prompting calls for new leadership to protect investors' interests.
A group of major pension funds has demanded Elon Musk work at least 40 hours a week at Tesla and called for governance reforms, citing concerns over Musk's absence and leadership crisis at the company. The investors, managing about $950 billion, are pushing for a new pay structure and a more independent board to ensure Musk's full-time commitment, amid ongoing shareholder tensions and Tesla's recent stock decline.
JPMorgan analysts predict a $50 billion outflow from US equities due to quarter-end rebalancing by institutional investors, including defined benefit pension funds, balanced mutual funds, and sovereign wealth funds. This could reverse the recent support provided by declining short interest in SPY and QQQ ETFs.
The UK government is banking on the nation's vast pension savings, worth around $3.2 trillion, to revive the struggling economy. Nine major pension providers have agreed to increase their investments in high-growth UK companies, potentially unlocking $64.5 billion of funding. The move aims to increase retirement income and direct more funds towards promising companies. The government also announced plans to make it easier for firms to list in London and roll back unnecessary EU laws. These reforms, along with other measures to spur investment, are part of an effort to position the UK as a global capital for capital and attract businesses wanting to grow and raise capital.
Outgoing Chicago Mayor Lori Lightfoot signed a series of executive orders on her last day in office, aimed at securing her key initiatives and forcing her successor, Mayor-elect Brandon Johnson, to continue her spending plans. The orders cover a range of subjects, including replenishing city pension funds, burnishing immigrant rights, and establishing a "Youth Commission" of 32 teens. Lightfoot's move is seemingly designed to box Johnson in by making him walk away from a measure she touts as fiscally responsible.
Some of the UK's largest pension funds have voted against reappointing BP's chairman over a decision to weaken its climate plans, but the majority of shareholders backed Helge Lund. BP cut back its target to reduce emissions by the end of the decade from 35-40% to 20-30% so it could produce more oil and gas and extend the life of existing fossil fuel projects. The five pension funds, which manage the pensions of more than a third of the UK's workers, are concerned that the new targets put BP financially at risk because the company's fossil fuel projects are likely to lose value as the world moves towards net zero emissions.
