In a bold move, New York City Comptroller Brad Lander is calling on Tesla to distance itself from its current image as a family-owned business and operate more like a publicly traded company. Lander, who oversees five public pension funds with $242 billion in assets, is urging Tesla's board and CEO Elon Musk to make changes to ensure independent governance and address concerns about Musk's compensation package.

Lander expressed his skepticism over Musk's ability to effectively lead Tesla while serving as CEO of his other ventures, which include SpaceX, The Boring Company, xAI, X, and Neuralink. He argued that major publicly traded companies usually expect their CEOs to be fully committed to their respective organizations, emphasizing the need for a dedicated CEO.

To highlight their concerns, Lander and a coalition of seven other investors have filed a notice outlining a series of governance issues at Tesla. One of their main concerns is that Musk does not work at Tesla full-time, suggesting that his attention may be diverted by his other ventures.

The recent criticism from the investors comes on the heels of a rebuke from Delaware Chancery Court judge Kathaleen McCormick in January. The court ruled that Tesla's board lacked independence in approving Musk's prior compensation plan and that Musk controlled the process and dictated the terms. Lander expressed astonishment that the board would continue to propose a new compensation plan after such a rebuke.

Lander emphasized that the issues at Tesla could have far-reaching implications for other companies and founders who want to retain control of their businesses while accessing capital markets. He argued that Tesla's situation is not in line with the shareholder governance model that has allowed flourishing capital markets in America for generations.

Although Lander and the coalition of investors are not currently seeking to replace Musk, Lander believes that the Tesla CEO is indeed replaceable. He called on the board to negotiate an appropriate compensation package with Musk to ensure that the CEO gives Tesla the necessary attention and focus it requires.

Tesla has not yet responded to Fortune's request for comment on the matter. However, Tesla Chair Robyn Denholm has previously pushed back against the court's ruling, claiming that her close ties to Musk should not hinder her independence.

As this issue continues to unfold, it remains uncertain how Tesla's board and shareholders will respond to the concerns raised by Lander and the coalition of investors. The importance of independent governance and CEO accountability remain at the center of this ongoing debate.