Major Tesla Shareholder to Vote Against Musk's $1.5 Trillion Pay Deal
Norway's sovereign wealth fund announced its intention to oppose ratification of Elon Musk's proposed compensation package, which could reach $US1 trillion.
Background and Stake
The fund, the largest in the world, owns the seventh-largest stake in Tesla and is the most prominent shareholder to declare its voting stance ahead of the upcoming meeting.
Vote Details and Opposition
The crucial vote will occur on November 6, when investors decide whether to approve what might become the biggest CEO compensation deal ever.
Critics argue that the pay package is excessive, but the proposal has strong support from Tesla's board, which encourages shareholders to accept it.
Arguments For and Against
- The board, led by chair Robyn Denholm, emphasizes that rejecting the deal could lead Musk to leave Tesla, which has a market value of $1.5 trillion.
- Opponents concern that approving the package will grant Musk too much unchecked power.
Author's Summary
The world's largest sovereign fund opposes Elon Musk's historic compensation plan, highlighting ongoing tensions over executive pay and corporate governance at Tesla.