Norway’s sovereign wealth fund has voted against Tesla’s proposal to give CEO Elon Musk a $1 trillion compensation package.
The fund, which is managed by Norges Bank Investment Management, holds a 1.14% stake in Tesla, worth about $11.7 billion, according to mid year filing In June.
“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, the dilution and lack of mitigation of key person risk – consistent with our views on executive compensation,” the fund said in a statement. Posted on its website“We will continue to have constructive conversations with Tesla on this and other topics.”
NBIM’s rejection may not be enough to defeat the proposal. But it’s the latest hurdle in Tesla’s long campaign to influence shareholders to give Musk the largest corporate performance pay package in history. Advisory Group Like ISS and Glass Lewis have also recommended voting against the pay package.
Musk has argued that the compensation package is not about money as much as it is about control. Recently CEO clarified that During the company’s third quarter earnings call and threatened to leave Tesla if the package is not approved.
