SpaceX IPO filing says only Elon Musk can remove Elon Musk: Reports

SpaceX has told prospective investors that Elon Musk reportedly cannot be removed from his positions as chief executive and chairman without his own consent, as per an excerpt from the company’s initial public offering filing reviewed by Reuters.

The filing reportedly states that Musk “can only be removed from our board or these positions by the vote of Class B holders”, a class of super-voting shares carrying 10 votes each that Musk is expected to control after the IPO.

As per reports, if Musk “retains a significant portion of his holdings of Class B common stock for an extended period of time, he could continue to control the election and removal of a majority of our board”.

The arrangement forms part of a dual-class share structure that SpaceX plans to adopt as part of its stock market debut. Such structures are commonly used by founder-led technology firms to give founders and early investors greater control than ordinary shareholders.

However, corporate governance experts said the proposed arrangement appeared to go further than is typical in such cases, as company boards usually retain the formal authority to remove a chief executive, even where founders hold substantial voting power.

According to the filing, the structure would effectively give Musk veto power over any attempt to remove him from leadership positions. SpaceX also warned investors that the arrangement “will limit or preclude your ability to influence corporate matters and the election of our directors”.

Neither SpaceX nor Elon Musk responded to requests for comment, Reuters reported.