Edward W. Niedermeyer calls the plans to put SpaceX and OpenAI public at ludicrously inflated valuations and dump shares on index funds for real money BAGNAROK. American pension funds are starting to say out loud that this is a bad deal.

The officials - representing three of the top four largest public pension plans in the U.S. - objected to the amount of power the board has given Musk over the company, including voting control over the stock, veto power over his ​own removal as CEO, and protections from litigation, including mandatory arbitration for SpaceX shareholder claims.

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In their letter, the pension leaders urged SpaceX to adopt one-share, one-vote or sunset super-voting shares within seven years; install a majority-independent board and separate ⁠the CEO and ​chair roles; eliminate provisions protecting Musk from termination without his approval; scrap mandatory arbitration; and require independent approval of related-party ​transactions with Musk's other companies.

"Precisely because SpaceX is poised to occupy a position of systemic importance in the public markets, and to become, through index inclusion, an unavoidable holding in our portfolios, its governance must at least adhere to the baseline protections upon ​which long-term institutional capital depends, rather than seeking to diminish them," they wrote.