Danish pension fund excludes SpaceX citing governance and valuation | Reuters

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REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tabCompaniesSpace Exploration Technologies CorpFollowCOPENHAGEN, May 29 (Reuters) - Danish pension fund Akademikerpension said on Friday it had placed SpaceX on ​its portfolio exclusion list ahead of ‌the company's initial public offering, citing concerns about the governance structure and what it said was ​an overvalued stock. Sign up here.Market indications point to ​a valuation of at least $1.8 trillion for ⁠SpaceX, Akademikerpension said in a statement, ​adding that it was difficult to justify ​a market valuation above $1 trillion.Investors are asked to accept an unprecedentedly low risk premium for a ​highly uncertain company, the pension fund ​said.SpaceX did not immediately respond to a request for ‌comment ⁠when contacted by Reuters via email.Akademikerpension also said the governance structure of SpaceX was "extremely deficient", adding that Elon Musk is ​expected to ​control more ⁠than 80% of the voting rights while simultaneously serving as ​chief executive officer, chief technology officer ​and ⁠chair of the board."The extreme concentration of power effectively prevents the board from ⁠exercising ​meaningful oversight and makes it ​impossible to remove Musk against his will," Akademikerpension said.Reporting ​by Louise Rasmussen, editing by Terje SolsvikOur Standards: The Thomson Reuters Trust Principles., opens new tabSuggested Topics:TransactionalCorporate GovernanceEmployee Benefits & Executive CompensationEmploymentXFacebookLinkedinEmailLinkPurchase Licensing RightsRead Next / Editor's Picks agoGovernmentcategoryWall St regulator proposes to scrap Biden-era climate ruleMay 26, 2026TransactionalcategoryAdvent, ADIA-backed gas engine maker Innio targets $20.3 billion valuation in US IPOMay 26, 2026WorldcategorySoftBank hires banks for US IPOs of SB Energy and AI robotics spinoff Roze, sources sayMay 26, 2026TransactionalcategoryApplied Aerospace & Defense eyes $3.59 billion valuation in US IPOMay 26, 2026WorldcategorySwiss-based Terra Quantum changes partner ahead of $3.5 bln listingMay 26, 2026TransactionalcategoryChina pharma industry not impacted by Beijing scrutiny of sensitive tech deals, JW chief saysMay 27, 2026BusinesscategoryBP ousts Chair Albert Manifold citing governance and conduct issues agoWorldcategoryUS investigates Vietnam's intellectual property practicesMay 26, 2026TechnologycategoryHoneywell's Quantinuum targets $12.7 billion valuation in US IPO agoBusinesscategoryYum Brands in exclusive talks to sell Pizza Hut to LongRange Capital, source says agoWorldcategoryTrump issues memo on higher pay for national security staff involved with critical minerals agoWorld at WorkcategoryUK has no timeline to end lower pay for 18-20 year-olds, minister says agoLitigationcategoryUK banks still lack access to Mythos AI model, BoE's Bailey saysSite IndexLatestHomeAuthorsTopic SitemapArchiveArticle SitemapMediaVideosPicturesGraphicsPodcastsLatestHomeAuthorsTopic SitemapArchiveArticle SitemapBrowseWorldBusinessMarketsSustainabilityLegalBreakingviewsTechnologyInvestigationsSportsScienceLifestyleMediaVideosPicturesGraphicsPodcastsAbout ReutersAbout Reuters, opens new tabMedia Center, opens new tabAdvertise with Us, opens new tabCareers, opens new tabReuters News Agency, opens new tabBrand Attribution Guidelines, opens new tabReuters and AI, opens new tabReuters Leadership, opens new tabReuters Fact CheckReuters Diversity Report, opens new tabCommercial Disclosure (Japan), opens new tabStay InformedDownload the App (iOS), opens new tabDownload the App (Android), opens new tabNewslettersSubscribeInformation you can trustReuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. 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The Danish pension fund Akademikerpension recently placed SpaceX on its portfolio exclusion list prior to the company's initial public offering, citing significant concerns regarding both the governance structure and the valuation of the company. The fund expressed difficulty in justifying the current market valuation, noting that market indications suggested at least a valuation of $1.8 trillion for SpaceX, yet they deemed it challenging to support a valuation exceeding $1 trillion. Furthermore, the pension fund advised investors to accept an unprecedentedly low risk premium associated with this highly uncertain company.

A core justification for the exclusion centered on the governance framework of SpaceX, which the pension fund characterized as "extremely deficient." This deficiency stems from an extreme concentration of power, as Elon Musk is expected to control more than eighty percent of the voting rights while simultaneously occupying multiple executive and board positions, including chief executive officer, chief technology officer, and chair of the board. This structure, according to the report, effectively obstructs the board from exercising meaningful oversight and makes it virtually impossible to remove Musk against his will. This concentration of authority raises serious questions about accountability and corporate oversight, prompting the pension fund to scrutinize the operational and fiduciary aspects of the enterprise before investment.