Norway's Sovereign Wealth Fund to Vote Against Elon Musk's $1 Trillion Pay Package
Norway's sovereign wealth fund announced plans to oppose the nearly $1 trillion compensation package for Tesla CEO Elon Musk at this week's annual shareholder meeting.
Details of the Pay Package
Elon Musk, whose net worth exceeds $400 billion, was set to receive a performance award valued at around $900 billion along with 432 million additional Tesla shares. This represents roughly a 25% ownership stake in the company.
If approved, this plan would make Musk the world's first trillionaire, according to The Guardian.
Fund's Opposition and Reasoning
Norges Bank Investment Management, the world's largest sovereign wealth fund and Tesla's seventh-largest shareholder with a 1.14% stake, said it will vote against the compensation plan at Thursday's meeting.
"While we appreciate the significant value created under Mr. Musk's visionary role, we are concerned about the total size of the award, dilution and lack of mitigation of key person risk – consistent with our views on executive compensation."
The fund also emphasized its intent to maintain constructive dialogue with Tesla on this and other matters.
Tesla's Board Chair Comments
Robyn Denholm, chairwoman of Tesla's board, warned last week that the company could lose Musk as CEO if shareholders reject the compensation package.
Summary
The Norwegian fund opposes Musk's unprecedented pay due to concerns over scale and risk, signaling a critical stance amidst Tesla's corporate governance challenges.
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