Norway’s $1.7 trillion sovereign wealth fund announced on Saturday its intention to vote against ratifying Tesla CEO Elon Musk’s $56 billion compensation package. The package, which is slated for a shareholder vote next week, was invalidated by a Delaware judge earlier this year.
As Tesla’s eighth-largest shareholder, according to LSEG data, the fund expressed concerns over Musk’s compensation, which stands as the largest for a chief executive in corporate America. Despite acknowledging the significant value generated under Musk’s leadership since the grant date in 2018, the fund cited worries regarding the total size of the award, its structure with performance triggers, dilution effects, and the lack of mitigation of key person risk.
Norges Bank Investment Management (NBIM), the operator of the fund, had previously voted against the package in 2018. They emphasized their ongoing commitment to engage in constructive dialogue with Tesla on this issue and others.
