C-Suite Throws Governance Out With the Garbage: Gautam Mukunda

Elon Musk, who already owns about 42% of SpaceX, will have 85% voting control following the company’s initial public offering. Documents filed with the Securities and Exchange Commission lay out some rare terms. Musk will simultaneously be chairman of the board, chief executive officer and chief technology officer. He appoints most of the board’s directors. He cannot be fired. Because SpaceX filed for “controlled company” status under Nasdaq rules, it will even be exempt from the requirement that a majority of its directors be independent. Public investors waive their rights to jury trials and class actions.

Although the ...